Exam 3: Cost Behaviour, Cost Drivers and Cost Estimation

The following is an extract of a cost report for Big Whale Car Wash for the six months from June to November.Management considers the activities in these six months as within the relevant range for the purpose of cost estimation.The car washing labour cost is a:

As a firm begins to operate outside the relevant range,the accuracy of cost estimates for fixed and variable costs: Fixed Variable

Research and development costs are an example of discretionary costs.

A cost that remains unchanged in total as the activity level (or cost driver)changes is called a:

Regardless of the approach taken to cost estimation,data collection will affect how 'good' the estimation is.

Regression analysis is a superior statistical method to the high-low method because it utilises all data when determining the line of best fit.

Total costs are $80 000 when 8000 units are made.Of this amount,variable costs are $48 000.What are the total costs when 10 000 units are produced?

The method of cost estimation that fits a cost line between two data points is:

The relationship between cost and activity is called:

Costs that remain fixed over wide ranges of activity but jump to a different amount outside that range are called:

In activity-based costing analysis,direct materials are classified as:

The method of cost estimation that minimises the sum of the squared deviations between the cost line and the data points is:

Which of the following is an example of an engineered cost?

Which of the following statements about the coefficient of determination (R²)is correct?

The following is an extract of a cost report for Big Whale Car Wash for the six months from June to November.Management considers the activities in these six months as within the relevant range for the purpose of cost estimation.The car washing labour cost is a:

For a manufacturer of kitchens,which of the following would you expect to be a fixed cost?

Forecasting a cost at a particular level of activity is called:

In regression analysis,the variable that is being predicted is:

When using regression analysis to determine estimated costs,what criteria are necessary to evaluate a particular regression line?

A regression model in which more than one independent variable is used to predict the dependent variable is called a: