Question 1

The least-squares regression method uses all of the available data to find the best fitting line.

Accepted Answer

A) True 
 B)False

Question 2

Using the results of the least-squares regression analysis,which value estimates variable cost per unit?

Accepted Answer

A)  R Square
B)  Intercept
C)  X Value
D)  Multiple RE) B) and D)
F) A) and B)

Question 3

The difference between variable costing and full absorption costing is due to differences in the treatment of:

Accepted Answer

A)  direct costs.
B)  variable manufacturing overhead.
C)  fixed manufacturing overhead.
D)  period costs.E) None of the above
F) A) and B)

Question 4

Full absorption costing divides fixed overhead between Cost of Goods Sold and period expenses.

Accepted Answer

A) True 
 B)False

Question 5

Flint Enterprises had the following cost and production information for May:  Inventory increased by 2,000 units during May.What is Flint Enterprise's income under variable costing?

Accepted Answer

A)  $4,620,000
B)  $4,652,000
C)  $5,070,000
D)  $5,132,000E) All of the above
F) A) and B)

Question 6

A mixed cost has:

Accepted Answer

A)  either fixed or variable cost components,but not both.
B)  only variable cost components,both within and outside of the relevant range.
C)  only fixed cost components,both within and outside of the relevant range.
D)  both fixed and variable cost components.E) A) and D)
F) All of the above

Question 7

All else being equal,if sales revenue doubles,variable costs will:

Accepted Answer

A)  decrease in total.
B)  increase in total.
C)  decrease on a per unit basis.
D)  increase on a per unit basis.E) B) and C)
F) None of the above

Question 8

Fremont,which uses the high-low method,reported total costs of $10 per unit at its lowest production level,5,000 units.When production tripled to its highest level,the total cost per unit dropped to $5.Fremont would estimate its total fixed cost as:

Accepted Answer

A)  $5
B)  $15
C)  $50,000
D)  $37,500E) B) and D)
F) B) and C)

Question 9

Flint Enterprises had the following cost and production information for April:  Inventory increased by 4,000 units during April.What is Flint Enterprise's income under absorption costing?

Accepted Answer

A)  $1,285,000
B)  $1,365,000
C)  $1,745,000
D)  $1,785,000E) All of the above
F) A) and B)

Question 10

Star,Inc.used Excel to run a least-squares regression analysis,which resulted in the following output:   What is Star's total fixed cost?

Accepted Answer

A)  $61,603
B)  $92,130
C)  $175,003
D)  $236,606E) A) and C)
F) B) and C)

Question 11

The high-low method requires three observations of costs to calculate the cost formula.

Accepted Answer

A) True 
 B)False

Exam 5: Cost Behavior

Using the results of the least-squares regression analysis,which value estimates variable cost per unit?

Correct Answer
verified

Flint Enterprises had the following cost and production information for May: Inventory increased by 2,000 units during May.What is Flint Enterprise's income under variable costing?

Correct Answer
verified

The difference between variable costing and full absorption costing is due to differences in the treatment of:

Correct Answer
verified

The high-low method requires three observations of costs to calculate the cost formula.

Correct Answer
verified

Star,Inc.used Excel to run a least-squares regression analysis,which resulted in the following output: What is Star's total fixed cost?

Correct Answer
verified

All else being equal,if sales revenue doubles,variable costs will:

Correct Answer
verified

A mixed cost has:

Correct Answer
verified

The least-squares regression method uses all of the available data to find the best fitting line.

Correct Answer
verified

Fremont,which uses the high-low method,reported total costs of $10 per unit at its lowest production level,5,000 units.When production tripled to its highest level,the total cost per unit dropped to $5.Fremont would estimate its total fixed cost as:

Correct Answer
verified

Flint Enterprises had the following cost and production information for April: Inventory increased by 4,000 units during April.What is Flint Enterprise's income under absorption costing?

Correct Answer
verified

Full absorption costing divides fixed overhead between Cost of Goods Sold and period expenses.

Correct Answer
verified

Exam 5: Cost Behavior

Using the results of the least-squares regression analysis,which value estimates variable cost per unit?

Correct AnswerverifiedShow Answer

Flint Enterprises had the following cost and production information for May: Inventory increased by 2,000 units during May.What is Flint Enterprise's income under variable costing?

Correct AnswerverifiedShow Answer

The difference between variable costing and full absorption costing is due to differences in the treatment of:

Correct AnswerverifiedShow Answer

The high-low method requires three observations of costs to calculate the cost formula.

Correct AnswerverifiedShow Answer

Star,Inc.used Excel to run a least-squares regression analysis,which resulted in the following output: What is Star's total fixed cost?

Correct AnswerverifiedShow Answer

All else being equal,if sales revenue doubles,variable costs will:

Correct AnswerverifiedShow Answer

A mixed cost has:

Correct AnswerverifiedShow Answer

The least-squares regression method uses all of the available data to find the best fitting line.

Correct AnswerverifiedShow Answer

Fremont,which uses the high-low method,reported total costs of $10 per unit at its lowest production level,5,000 units.When production tripled to its highest level,the total cost per unit dropped to $5.Fremont would estimate its total fixed cost as:

Correct AnswerverifiedShow Answer

Flint Enterprises had the following cost and production information for April: Inventory increased by 4,000 units during April.What is Flint Enterprise's income under absorption costing?

Correct AnswerverifiedShow Answer

Full absorption costing divides fixed overhead between Cost of Goods Sold and period expenses.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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