Exam 3: Cost Behaviour, Cost Drivers and Cost Estimation

Technical Engineering presently leases a copying machine on a monthly basis.The lease agreement requires a fixed fee each month in addition to a charge per copy.Technical Engineering made 2400 copies and paid a total of $162 in rent in September and in October they paid $195 for 3500 copies.Determine Technical Engineering's variable cost per copy.

Which of the following statements is most complete and correct?

The results of the regression analysis to estimate delivery costs are as follows Which of the following statements represent a valid conclusion based on the above regression analysis output?

A cost that changes in total in direct proportion to a change in the cost driver is a:

Which of the following can always be physically traced to the cost object?

Units produced 12 000 15 000 Direct materials $36 000 $45 000 Based on the above data,the direct material costs for producing 7000 units are $21 000.Graduate Attribute: Problem Solving

Which term describes a cost resulting from the existence of the organisational structure and premises used by the firm?

A cost that has both a fixed and variable component is called a:

The fixed costs per unit are $10 when a company makes 10 000 units.What are the per unit fixed costs when 12 500 units are produced?

Lawson Lumber uses the high-low method to estimate electricity cost,which varies in relation to machine hours.Based on the following data,how would the cost function be stated if 'X' is the number of machine hours?

Which per unit cost does the slope of the total cost line represent?

In assessing the costs and benefits of using a particular cost driver,which of the following must be taken into account? i.The availability of cost data ii.The time frame for analysing the cost behaviour. iii.Whether it is a fixed or variable cost.

Units produced 12 000 15 000 Direct materials $36 000 $45 000 Based on the above data,at the production level of 10 000 units,the fixed costs per unit are $5 per unit and if the firm produced 8000 units the fixed cost per unit would remain constant at $5.Graduate Attribute: Problem Solving

The results of the regression analysis to estimate delivery costs are as follows Which of the following is an appropriate cost equation based on the above regression output?

If the cost of a complaints department is driven by the number of calls taken,the calls are said to be the dependent variable.

In activity-based costing analysis,the manufacturing manager's salary is classified as:

Relevant range is only important when determining fixed costs.Graduate Attribute: Problem Solving

'Time and motion studies' refers to: