Question 1

Resources are categorized as flexible, which are supplied as needed, and committed, which are supplied in advance of usage.

Accepted Answer

A) True 
 B)False

Question 2

Variable costs are defined as costs that, in total, are constant regardless of change in an activity driver.

Accepted Answer

A) True 
 B)False

Question 3

The following data is available of estimated overhead costs using linear regression:     Degrees of Freedom 15
          16
17
18
19
What is the interval around Y if 95 percent confidence is desired?

Accepted Answer

A)  Y ± 20.024 
B)  Y ± 43.87759 
C)  Y ± 52.8133 
D)  Y ± 53.33893 
A)  Y ± 20.024 
B)  Y ± 43.87759 
C)  Y ± 52.8133 
D)  Y ± 53.33893

Question 4

The average unit cost at a monthly volume of 9,000 units is $3, and the average unit cost at a monthly volume of 22,500 units is $2.10.
Required:
Develop an equation for total monthly costs.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& Variable cost per unit = ($4

Question 5

The three quantitative methods of separating a mixed cost into its fixed and variable components are: the high-low method, the scatter plot method and the method of .

Accepted Answer

The answer of The three quantitative methods of separating a...

Question 6

The hypothesis test of cost parameters

Accepted Answer

A)  is not tested by the t-statistic. 
B)  indicates whether the parameters are different from zero. 
C)  tells the t-value of the significance achieved. 
D)  all of the above. 
A)  is not tested by the t-statistic. 
B)  indicates whether the parameters are different from zero. 
C)  tells the t-value of the significance achieved. 
D)  all of the above.

Question 7

The plot of data points showing the relationship between materials handling costs and activity output is called a scattergraph.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is TRUE about the learning curve?

Accepted Answer

A)  The curve decreases at an increasing rate. 
B)  The learning effect will eventually disappear as the number of units produced increases. 
C)  Failure to recognize learning curve effects will cause units produced later in a new production process to receive less cost than they should. 
D)  All of these. 
A)  The curve decreases at an increasing rate. 
B)  The learning effect will eventually disappear as the number of units produced increases. 
C)  Failure to recognize learning curve effects will cause units produced later in a new production process to receive less cost than they should. 
D)  All of these.

Question 9

A coefficient of determination of 0.91 means

Accepted Answer

A)  the two variables move together in the same direction and have a strong relationship. 
B)  the parameter is not significant. 
C)  the model is significant 91 percent of the time. 
D)  that the independent variable explains 91 percent of the cost. 
A)  the two variables move together in the same direction and have a strong relationship. 
B)  the parameter is not significant. 
C)  the model is significant 91 percent of the time. 
D)  that the independent variable explains 91 percent of the cost.

Question 10

Resources, such as direct materials, direct labor, electricity, equipment, and so on, are economic elements that enable one to perform activities.

Accepted Answer

A) True 
 B)False

Question 11

The expenses that result when organizations acquire many multiperiod service capacities by paying cash up front or by entering into an explicit contract that requires periodic cash payments are called:

Accepted Answer

A)  Managed fixed expenses 
B)  Committed fixed expenses 
C)  Discretionary fixed expenses 
D)  Period expenses 
A)  Managed fixed expenses 
B)  Committed fixed expenses 
C)  Discretionary fixed expenses 
D)  Period expenses

Question 12

Spokane Corporation found its maintenance cost and sales dollars to be somewhat correlated. Last year's high and low observations were as follows:   What is the fixed portion of the maintenance cost?

Accepted Answer

A)  $28,000 
B)  $52,000 
C)  $60,000 
D)  $14,000 
A)  $28,000 
B)  $52,000 
C)  $60,000 
D)  $14,000

Question 13

An alternative measure of goodness of fit is the coefficient of determination.

Accepted Answer

A) True 
 B)False

Question 14

The account analysis method can be used to estimate costs by classifying accounts in the general ledger as variable.

Accepted Answer

A) True 
 B)False

Question 15

The most widely used method to determine cost behavior is managerial judgement.

Accepted Answer

A) True 
 B)False

Question 16

analysis focuses on how costs react to changes in activity levels.

Accepted Answer

The answer of analysis focuses on how costs react to...

Question 17

Which of the following is an example of a committed fixed expense?

Accepted Answer

A)  depreciation on a factory building 
B)  supervisor's salary 
C)  direct labor 
D)  insurance on a building 
A)  depreciation on a factory building 
B)  supervisor's salary 
C)  direct labor 
D)  insurance on a building

Question 18

If all the activity capacity acquired is not used, this is an example of

Accepted Answer

A)  practical capacity. 
B)  activity capacity. 
C)  unused capacity. 
D)  ideal capacity. 
A)  practical capacity. 
B)  activity capacity. 
C)  unused capacity. 
D)  ideal capacity.

Question 19

explain changes in cost factors other than changes in units produced.

Accepted Answer

Non-unit-b

Question 20

Alamo, Inc., is beginning the production of a new product. Management believes that 500 labor hours will be required to complete the new unit. An 80 percent incremental unit-time learning curve model for direct labor hours is assumed to be valid. Assume the q = -0.3219. Data on costs are as follows:   Required: 
a. Set up a table with columns for cumulative number of units showing the cumulative total time in hours using the incremental unit-time learning curve. Complete the table for 1, 2, 3, and 4 units given the individual unit time for the nth unit as 500, 400, 351, and 320 for 1 to 4 units respectively.
b. Set up a similar table assuming a 90 percent with the incremental unit-time learning curve with the individual unit time for the nth unit as 500, 450, 430, 405 for 1 to 4 units respectively.
c. What is the difference in variable cost of producing four units?

Accepted Answer

@#IMG-DLM& c. 0.80 model = $200,000 + (5

Resources are categorized as flexible, which are supplied as needed, and committed, which are supplied in advance of usage.

Variable costs are defined as costs that, in total, are constant regardless of change in an activity driver.

The following data is available of estimated overhead costs using linear regression: Degrees of Freedom 15 16 17 18 19 What is the interval around Y if 95 percent confidence is desired?

The average unit cost at a monthly volume of 9,000 units is $3, and the average unit cost at a monthly volume of 22,500 units is $2.10. Required: Develop an equation for total monthly costs.

The three quantitative methods of separating a mixed cost into its fixed and variable components are: the high-low method, the scatter plot method and the method of .

The hypothesis test of cost parameters

The plot of data points showing the relationship between materials handling costs and activity output is called a scattergraph.

Which of the following statements is TRUE about the learning curve?

A coefficient of determination of 0.91 means

Resources, such as direct materials, direct labor, electricity, equipment, and so on, are economic elements that enable one to perform activities.

The expenses that result when organizations acquire many multiperiod service capacities by paying cash up front or by entering into an explicit contract that requires periodic cash payments are called:

Spokane Corporation found its maintenance cost and sales dollars to be somewhat correlated. Last year's high and low observations were as follows: What is the fixed portion of the maintenance cost?

An alternative measure of goodness of fit is the coefficient of determination.

The account analysis method can be used to estimate costs by classifying accounts in the general ledger as variable.

The most widely used method to determine cost behavior is managerial judgement.

analysis focuses on how costs react to changes in activity levels.

Which of the following is an example of a committed fixed expense?

If all the activity capacity acquired is not used, this is an example of

explain changes in cost factors other than changes in units produced.

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

Resources are categorized as flexible, which are supplied as needed, and committed, which are supplied in advance of usage.

Variable costs are defined as costs that, in total, are constant regardless of change in an activity driver.

The following data is available of estimated overhead costs using linear regression: Degrees of Freedom 15 16 17 18 19 What is the interval around Y if 95 percent confidence is desired?

The average unit cost at a monthly volume of 9,000 units is $3, and the average unit cost at a monthly volume of 22,500 units is $2.10. Required: Develop an equation for total monthly costs.

The three quantitative methods of separating a mixed cost into its fixed and variable components are: the high-low method, the scatter plot method and the method of .

The hypothesis test of cost parameters

The plot of data points showing the relationship between materials handling costs and activity output is called a scattergraph.

Which of the following statements is TRUE about the learning curve?

A coefficient of determination of 0.91 means

Resources, such as direct materials, direct labor, electricity, equipment, and so on, are economic elements that enable one to perform activities.

The expenses that result when organizations acquire many multiperiod service capacities by paying cash up front or by entering into an explicit contract that requires periodic cash payments are called:

Spokane Corporation found its maintenance cost and sales dollars to be somewhat correlated. Last year's high and low observations were as follows: What is the fixed portion of the maintenance cost?

An alternative measure of goodness of fit is the coefficient of determination.

The account analysis method can be used to estimate costs by classifying accounts in the general ledger as variable.

The most widely used method to determine cost behavior is managerial judgement.

analysis focuses on how costs react to changes in activity levels.

Which of the following is an example of a committed fixed expense?

If all the activity capacity acquired is not used, this is an example of

explain changes in cost factors other than changes in units produced.

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