Question 1

A correlation coefficient near -1 means that two variables are moving in the direction

Accepted Answer

opposite

Question 2

A manufacturing company pays an assembly line worker $12 per hour. What is the proper classification of this labor cost?

Accepted Answer

A)  variable cost 
B)  semivariable cost 
C)  fixed cost 
D)  mixed cost 
A)  variable cost 
B)  semivariable cost 
C)  fixed cost 
D)  mixed cost A

Question 3

In a traditional cost management system, cost behavior is assumed to be driven only by

Accepted Answer

A)  unit based cost drivers. 
B)  non-unit level cost drivers. 
C)  activity-based cost drivers. 
D)  none of these. 
A)  unit based cost drivers. 
B)  non-unit level cost drivers. 
C)  activity-based cost drivers. 
D)  none of these. A

Question 4

The hypothesis test of cost parameters indicates whether the parameters are different from __________ .

Accepted Answer

The answer of The hypothesis test of cost parameters indicates...

Question 5

Whenever least squares is used to fit an equation involving two or more independent variables, the method is called multiple regression.

Accepted Answer

A) True 
 B)False

Question 6

Fixed costs are costs that, in total, are constant within the relevant range as the level of the associated driver varies.

Accepted Answer

A) True 
 B)False

Question 7

A feature of regression routines, not provided by the scatter plot of high-low methods, is to provide information to and in the assessment of reliability of the estimated costs formula.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT a correct statement concerning cost behavior?

Accepted Answer

A)  According to economics, in the long run, all costs are variable. 
B)  Variable costs increase in total in relation to the activity driver. 
C)  Unit fixed costs increase or decrease inversely in relation to the activity driver. 
D)  None of the above 
A)  According to economics, in the long run, all costs are variable. 
B)  Variable costs increase in total in relation to the activity driver. 
C)  Unit fixed costs increase or decrease inversely in relation to the activity driver. 
D)  None of the above

Question 9

The basis of the learning curve is that as we perform an action over and over, we improve, and each additional performance takes less time than the preceding ones.

Accepted Answer

A) True 
 B)False

Question 10

The Y in the equation Y = F + VX represents the , the dependent variable

Accepted Answer

The answer of The Y in the equation Y =...

Question 11

The costs incurred for the acquisition of short-run activity capacity, usually as the result of yearly planning are called:

Accepted Answer

A)  Discretionary fixed expenses 
B)  Committed fixed expenses 
C)  Mixed costs 
D)  Step-variable costs 
A)  Discretionary fixed expenses 
B)  Committed fixed expenses 
C)  Mixed costs 
D)  Step-variable costs

Question 12

The confidence interval for the predicted value of Y

Accepted Answer

A)  is a measure of the likelihood that the prediction interval will not contain the actual cost. 
B)  is constructed by multiplying the t-statistic times the standard error. 
C)  can only be computed with 95 percent confidence. 
D)  all of the above. 
A)  is a measure of the likelihood that the prediction interval will not contain the actual cost. 
B)  is constructed by multiplying the t-statistic times the standard error. 
C)  can only be computed with 95 percent confidence. 
D)  all of the above.

Question 13

Direct materials are an example of a

Accepted Answer

A)  fixed cost. 
B)  variable cost. 
C)  step cost. 
D)  mixed cost. 
A)  fixed cost. 
B)  variable cost. 
C)  step cost. 
D)  mixed cost.

Question 14

The percentage of variability in the dependent variable explained by an independent variable (i.e. measure of activity output) is called the coefficient of correlation.

Accepted Answer

A) True 
 B)False

Question 15

Costs in marketing, distribution, and service after the sale as number of units produced and sold
__________ .

Accepted Answer

The answer of Costs in marketing, distribution, and service after...

Question 16

Costs can display variable, fixed, or mixed behavior, and it important that they are classified accurately.

Accepted Answer

A) True 
 B)False

Question 17

Figure 3-1
Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units.
-See Figure 3-1. Compute the total machine maintenance cost for last year.

Accepted Answer

A)  $570,000 
B)  $550,000 
C)  $420,000 
D)  $20,000 
A)  $570,000 
B)  $550,000 
C)  $420,000 
D)  $20,000

Question 18

Figure 3-9
Hereford Company is planning to introduce a new product with an 80 percent learning rate for production for batches of 1,000 units. The variable labor costs are $30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are $10,000 in fixed costs not subject to learning.
-Refer to Figure 3-9. What is the cumulative average time per batch using the incremental unit-time learning curve for 2,000 units?

Accepted Answer

A)  180 
B)  100 
C)  90 
D)  80 
A)  180 
B)  100 
C)  90 
D)  80

Question 19

Which of the following equations uses multiple regression?

Accepted Answer

A)  Overhead = a + b(MH) 
B)  Overhead = a + b(DLH) 
C)  DL Costs = a + b(MH) 
D)  Overhead = a + b(DLH) + c(MH) 
A)  Overhead = a + b(MH) 
B)  Overhead = a + b(DLH) 
C)  DL Costs = a + b(MH) 
D)  Overhead = a + b(DLH) + c(MH)

Question 20

Based on managerial judgement, the best predictor of manufacturing costs is the units available.

Accepted Answer

A) True 
 B)False

A correlation coefficient near -1 means that two variables are moving in the direction

A manufacturing company pays an assembly line worker $12 per hour. What is the proper classification of this labor cost?

In a traditional cost management system, cost behavior is assumed to be driven only by

The hypothesis test of cost parameters indicates whether the parameters are different from __________ .

Whenever least squares is used to fit an equation involving two or more independent variables, the method is called multiple regression.

Fixed costs are costs that, in total, are constant within the relevant range as the level of the associated driver varies.

A feature of regression routines, not provided by the scatter plot of high-low methods, is to provide information to and in the assessment of reliability of the estimated costs formula.

Which of the following is NOT a correct statement concerning cost behavior?

The basis of the learning curve is that as we perform an action over and over, we improve, and each additional performance takes less time than the preceding ones.

The Y in the equation Y = F + VX represents the , the dependent variable

The costs incurred for the acquisition of short-run activity capacity, usually as the result of yearly planning are called:

The confidence interval for the predicted value of Y

Direct materials are an example of a

The percentage of variability in the dependent variable explained by an independent variable (i.e. measure of activity output) is called the coefficient of correlation.

Costs in marketing, distribution, and service after the sale as number of units produced and sold __________ .

Costs can display variable, fixed, or mixed behavior, and it important that they are classified accurately.

Which of the following equations uses multiple regression?

Based on managerial judgement, the best predictor of manufacturing costs is the units available.

Introduction to Cost Management

Basic Cost Management Concepts

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility, Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 3: Cost Behavior

A correlation coefficient near -1 means that two variables are moving in the direction

A manufacturing company pays an assembly line worker $12 per hour. What is the proper classification of this labor cost?

In a traditional cost management system, cost behavior is assumed to be driven only by

The hypothesis test of cost parameters indicates whether the parameters are different from __________ .

Whenever least squares is used to fit an equation involving two or more independent variables, the method is called multiple regression.

Fixed costs are costs that, in total, are constant within the relevant range as the level of the associated driver varies.

A feature of regression routines, not provided by the scatter plot of high-low methods, is to provide information to and in the assessment of reliability of the estimated costs formula.

Which of the following is NOT a correct statement concerning cost behavior?

The basis of the learning curve is that as we perform an action over and over, we improve, and each additional performance takes less time than the preceding ones.

The Y in the equation Y = F + VX represents the , the dependent variable

The costs incurred for the acquisition of short-run activity capacity, usually as the result of yearly planning are called:

The confidence interval for the predicted value of Y

Direct materials are an example of a

The percentage of variability in the dependent variable explained by an independent variable (i.e. measure of activity output) is called the coefficient of correlation.

Costs in marketing, distribution, and service after the sale as number of units produced and sold __________ .

Costs can display variable, fixed, or mixed behavior, and it important that they are classified accurately.

Which of the following equations uses multiple regression?

Based on managerial judgement, the best predictor of manufacturing costs is the units available.

Introduction to Cost Management

Basic Cost Management Concepts

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility, Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters