ECONOMICS
Multiple Choice
Michigan has an abundant supply of fresh water. However, an economist would consider it a scarce resource because
a.water is necessary for humans' physical survival
b.pollution will eventually destroy all life in the Great Lakes
c.water is limited relative to people's unlimited wants
d.water commands a very high price
e.nature can destroy water as well as create it
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Thursday, June 30, 2011
Economics is best described as the
ECONOMICS
Multiple Choice
Economics is best described as the
a.study of choice when scarcity exists
b.study of the production of goods and services
c.theory of consumer behavior
d.science of money
e.art of spending money wisely
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Multiple Choice
Economics is best described as the
a.study of choice when scarcity exists
b.study of the production of goods and services
c.theory of consumer behavior
d.science of money
e.art of spending money wisely
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2. Economics is the study of
ECONOMICS
Multiple Choice
Economics is the study of
a.how the human race differs from other species
b.how individuals amass personal fortunes in the stock market
c.how individuals and nations deal with the problem of scarcity
d.role that money plays in the economy
e.how goods and services are distributed throughout the world
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Multiple Choice
Economics is the study of
a.how the human race differs from other species
b.how individuals amass personal fortunes in the stock market
c.how individuals and nations deal with the problem of scarcity
d.role that money plays in the economy
e.how goods and services are distributed throughout the world
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Which of the following is the best definition of economics?
ECONOMICS
Multiple Choice
Which of the following is the best definition of economics?
a.An investigation of the quantities and prices of the various goods produced by the nations of the world.
b.A study of why inflation and unemployment periodically plague the U.S. economy.
c.An analysis of how individuals and societies deal with the problem of scarcity.
d.An examination of the role that money plays in the economy.
e.A study of how goods and services are distributed throughout the world.
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Multiple Choice
Which of the following is the best definition of economics?
a.An investigation of the quantities and prices of the various goods produced by the nations of the world.
b.A study of why inflation and unemployment periodically plague the U.S. economy.
c.An analysis of how individuals and societies deal with the problem of scarcity.
d.An examination of the role that money plays in the economy.
e.A study of how goods and services are distributed throughout the world.
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Economics is the study of
ECONOMICS
Multiple Choice
Economics is the study of
a.how to get rich by playing the stock market
b.the best ways to reduce people's wants, given the scarcity of resources
c.how rational government officials determine what goods should be produced
d.money and why it is good
e.how people use limited resources to try to satisfy unlimited wants
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Multiple Choice
Economics is the study of
a.how to get rich by playing the stock market
b.the best ways to reduce people's wants, given the scarcity of resources
c.how rational government officials determine what goods should be produced
d.money and why it is good
e.how people use limited resources to try to satisfy unlimited wants
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Economics is best defined as the study of how
ECONOMICS
Multiple Choice
Economics is best defined as the study of how
a.individuals decide to use scarce resources in an attempt to satisfy their unlimited wants
b.to make money
c.the government should deal with unemployment and inflation
d.to eliminate the problem of scarce resources
e.to run a business
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Multiple Choice
Economics is best defined as the study of how
a.individuals decide to use scarce resources in an attempt to satisfy their unlimited wants
b.to make money
c.the government should deal with unemployment and inflation
d.to eliminate the problem of scarce resources
e.to run a business
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Some individuals or families can become completely saturated with a service such as television
ECONOMICS
Multiple Choice
Some individuals or families can become completely saturated with a service such as television. This suggests that
a.wants are limited
b.desires for a single commodity can be satisfied but then the focus will switch to other goods and services
c.a highly productive economy may someday be able to satisfy all human desires
d.resources are not truly fixed in supply as we generally assume
e.scarcity does not exist
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Multiple Choice
Some individuals or families can become completely saturated with a service such as television. This suggests that
a.wants are limited
b.desires for a single commodity can be satisfied but then the focus will switch to other goods and services
c.a highly productive economy may someday be able to satisfy all human desires
d.resources are not truly fixed in supply as we generally assume
e.scarcity does not exist
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Wednesday, June 29, 2011
Which of the following statements regarding the basic economic problem of scarcity is correct?
ECONOMICS
Multiple Choice
Which of the following statements regarding the basic economic problem of scarcity is correct?
a.The problem only exists in countries that are not highly industrialized.
b.The problem is likely to disappear as production increases.
c.The problem is sure to disappear as technology improves.
d.The problem will exist as long as resources are available in limited amounts.
e.The problem will disappear as a person's income falls.
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Multiple Choice
Which of the following statements regarding the basic economic problem of scarcity is correct?
a.The problem only exists in countries that are not highly industrialized.
b.The problem is likely to disappear as production increases.
c.The problem is sure to disappear as technology improves.
d.The problem will exist as long as resources are available in limited amounts.
e.The problem will disappear as a person's income falls.
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Because people's wants are unlimited but resources are scarce,
ECONOMICS
Multiple Choice
Because people's wants are unlimited but resources are scarce,
a.only the rich get everything they want
b.choices must be made
c.there will be more services produced than goods
d.people search for spiritual fulfillment rather than material fulfillment
e.poor people never get anything they want
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Multiple Choice
Because people's wants are unlimited but resources are scarce,
a.only the rich get everything they want
b.choices must be made
c.there will be more services produced than goods
d.people search for spiritual fulfillment rather than material fulfillment
e.poor people never get anything they want
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Scarcity
ECONOMICS
Multiple Choice
Scarcity
a.exists because people have wants that are unlimited relative to the availability of resources to satisfy those wants
b.applies when a resource is not freely available
c.means that each society and each individual must make choices
d.exists in all societies
e.all of the above are true
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Multiple Choice
Scarcity
a.exists because people have wants that are unlimited relative to the availability of resources to satisfy those wants
b.applies when a resource is not freely available
c.means that each society and each individual must make choices
d.exists in all societies
e.all of the above are true
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Scarcity is best defined as
ECONOMICS
Multiple Choice
Scarcity is best defined as
a.unlimited resources
b.a shortage -- when buyers cannot obtain the goods they want
c.a surplus -- when sellers cannot sell the goods they produce
d.insufficient resources to satisfy unlimited wants
e.the private ownership of society's resources
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Multiple Choice
Scarcity is best defined as
a.unlimited resources
b.a shortage -- when buyers cannot obtain the goods they want
c.a surplus -- when sellers cannot sell the goods they produce
d.insufficient resources to satisfy unlimited wants
e.the private ownership of society's resources
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The problem of scarce resources
ECONOMICS
Multiple Choice
The problem of scarce resources
a.means that in some cities there are not enough jobs
b.could be solved if the unemployment rate fell
c.is that there are not enough resources to satisfy people's unlimited wants
d.is that resources are used inefficiently
e.can be solved by lowering taxes
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Multiple Choice
The problem of scarce resources
a.means that in some cities there are not enough jobs
b.could be solved if the unemployment rate fell
c.is that there are not enough resources to satisfy people's unlimited wants
d.is that resources are used inefficiently
e.can be solved by lowering taxes
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The fact that people have unlimited wants means that
ECONOMICS
Multiple Choice
The fact that people have unlimited wants means that
a.they always want more of at least one good
b. each person has an unlimited desire for every good
c. labor unions demand wage increases
d. selfish people are not concerned about others
e. people buy goods without regard to what they can afford
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Multiple Choice
The fact that people have unlimited wants means that
a.they always want more of at least one good
b. each person has an unlimited desire for every good
c. labor unions demand wage increases
d. selfish people are not concerned about others
e. people buy goods without regard to what they can afford
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Rent is the payment received by resource owners for the use of their natural resources
ECONOMICS
Multiple Choice
Rent is the payment received by resource owners for the use of their natural resources.
a.True
b.False
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Multiple Choice
Rent is the payment received by resource owners for the use of their natural resources.
a.True
b.False
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Profit is the payment received by resource owners for the use of their capital
ECONOMICS
Multiple Choice
Profit is the payment received by resource owners for the use of their capital.
a.True
b.False
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Multiple Choice
Profit is the payment received by resource owners for the use of their capital.
a.True
b.False
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In economics, money is an example of capital
ECONOMICS
Multiple Choice
In economics, money is an example of capital.
a.True
b.False
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Multiple Choice
In economics, money is an example of capital.
a.True
b.False
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Economics studies how decision makers use scarce resources to satisfy unlimited wants
ECONOMICS
Multiple Choice
Economics studies how decision makers use scarce resources to satisfy unlimited wants
a.True
b.False
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Multiple Choice
Economics studies how decision makers use scarce resources to satisfy unlimited wants
a.True
b.False
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Economics is best defined as the study of how individuals decide to use limited resources in an attempt to satisfy unlimited wants
ECONOMICS
Multiple Choice
Economics is best defined as the study of how individuals decide to use limited resources in an attempt to satisfy unlimited wants.
a.True
b.False
Click here for the SOLUTION
Multiple Choice
Economics is best defined as the study of how individuals decide to use limited resources in an attempt to satisfy unlimited wants.
a.True
b.False
Click here for the SOLUTION
How is the cost function stated?
ACCOUNTING
Multiple Choice
The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
Month Cost Hours
January $40,000 3,500
February 24,400 2,000
March 31,280 2,450
April 36,400 3,000
May 44,160 3,900
June 42,400 3,740
How is the cost function stated?
a. y = $26,672 + $1.84X
b. y = $21,360 + $1.52X
c. y = $10,112 + $8.64X
d. y = $3,600 + $10.40X
Click here for the SOLUTION
Multiple Choice
The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
Month Cost Hours
January $40,000 3,500
February 24,400 2,000
March 31,280 2,450
April 36,400 3,000
May 44,160 3,900
June 42,400 3,740
How is the cost function stated?
a. y = $26,672 + $1.84X
b. y = $21,360 + $1.52X
c. y = $10,112 + $8.64X
d. y = $3,600 + $10.40X
Click here for the SOLUTION
What is the estimated total cost at an operating level of 5,000 units?
ACCOUNTING
Multiple Choice
Presented below are the production data for the first six months of the year for the mixed costs incurred by Gallup Company.
Month Cost Units
January $4,890 4,100
February 4,024 3,200
March 6,480 5,300
April 8,840 7,500
May 5,800 4,800
June 7,336 6,600
Gallup Company uses the high-low method to analyze mixed costs.
What is the estimated total cost at an operating level of 5,000 units?
a. $6,227.20
b. $6,040.00
c. $4,283.20
d. $8,510.00
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Multiple Choice
Presented below are the production data for the first six months of the year for the mixed costs incurred by Gallup Company.
Month Cost Units
January $4,890 4,100
February 4,024 3,200
March 6,480 5,300
April 8,840 7,500
May 5,800 4,800
June 7,336 6,600
Gallup Company uses the high-low method to analyze mixed costs.
What is the estimated total cost at an operating level of 5,000 units?
a. $6,227.20
b. $6,040.00
c. $4,283.20
d. $8,510.00
Click here for the SOLUTION
How would the cost function be stated?
ACCOUNTING
Multiple Choice
Presented below are the production data for the first six months of the year for the mixed costs incurred by Gallup Company.
Month Cost Units
January $4,890 4,100
February 4,024 3,200
March 6,480 5,300
April 8,840 7,500
May 5,800 4,800
June 7,336 6,600
Gallup Company uses the high-low method to analyze mixed costs.
How would the cost function be stated?
a. y = $440 + $1.12X
b. y = $3,562.30 + $0.144X
c. y = $107.20 + $1.224X
d. y = $7,850 + $0.132X
Click here for the SOLUTION
Multiple Choice
Presented below are the production data for the first six months of the year for the mixed costs incurred by Gallup Company.
Month Cost Units
January $4,890 4,100
February 4,024 3,200
March 6,480 5,300
April 8,840 7,500
May 5,800 4,800
June 7,336 6,600
Gallup Company uses the high-low method to analyze mixed costs.
How would the cost function be stated?
a. y = $440 + $1.12X
b. y = $3,562.30 + $0.144X
c. y = $107.20 + $1.224X
d. y = $7,850 + $0.132X
Click here for the SOLUTION
What is the estimated total cost at an operating level of 8,000 hours?
ACCOUNTING
Multiple Choice
The Barnett Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Barnett Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
Cost Hours
$24,900 5,250
24,000 5,500
36,400 7,500
44,160 9,750
45,000 9,500
What is the estimated total cost at an operating level of 8,000 hours?
a. $43,740
b. $36,670
c. $46,875
d. $37,125
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Multiple Choice
The Barnett Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Barnett Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
Cost Hours
$24,900 5,250
24,000 5,500
36,400 7,500
44,160 9,750
45,000 9,500
What is the estimated total cost at an operating level of 8,000 hours?
a. $43,740
b. $36,670
c. $46,875
d. $37,125
Click here for the SOLUTION
What is the cost function?
ACCOUNTING
Multiple Choice
The Barnett Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Barnett Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
Cost Hours
$24,900 5,250
24,000 5,500
36,400 7,500
44,160 9,750
45,000 9,500
What is the cost function?
a. y = $43,191 + $0.19X
b. y = $4,875 + $5.25X
c. y = $41,900 + $0.23X
d. y = $2,430 + $4.28X
Click here for the SOLUTION
Multiple Choice
The Barnett Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Barnett Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
Cost Hours
$24,900 5,250
24,000 5,500
36,400 7,500
44,160 9,750
45,000 9,500
What is the cost function?
a. y = $43,191 + $0.19X
b. y = $4,875 + $5.25X
c. y = $41,900 + $0.23X
d. y = $2,430 + $4.28X
Click here for the SOLUTION
What is the estimate of total labor costs at Carroll Company when 10,000 labor-hours are used?
ACCOUNTING
Multiple Choice
For Carroll Company, labor-hours are 12,500 and wages $47,000 at the high point of the relevant range, and labor-hours are 7,500 and wages $35,000 at the low point of the relevant range.
What is the estimate of total labor costs at Carroll Company when 10,000 labor-hours are used?
a. $17,000
b. $41,000
c. $21,167
d. $27,000
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Multiple Choice
For Carroll Company, labor-hours are 12,500 and wages $47,000 at the high point of the relevant range, and labor-hours are 7,500 and wages $35,000 at the low point of the relevant range.
What is the estimate of total labor costs at Carroll Company when 10,000 labor-hours are used?
a. $17,000
b. $41,000
c. $21,167
d. $27,000
Click here for the SOLUTION
What is the constant?
ACCOUNTING
Multiple Choice
For Carroll Company, labor-hours are 12,500 and wages $47,000 at the high point of the relevant range, and labor-hours are 7,500 and wages $35,000 at the low point of the relevant range.
What is the constant?
a. $17,000
b. $12,000
c. $5,000
d. $41,750
Click here for the SOLUTION
Multiple Choice
For Carroll Company, labor-hours are 12,500 and wages $47,000 at the high point of the relevant range, and labor-hours are 7,500 and wages $35,000 at the low point of the relevant range.
What is the constant?
a. $17,000
b. $12,000
c. $5,000
d. $41,750
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What is the slope coefficient per labor-hour?
ACCOUNTING
Multiple Choice
For Carroll Company, labor-hours are 12,500 and wages $47,000 at the high point of the relevant range, and labor-hours are 7,500 and wages $35,000 at the low point of the relevant range.
What is the slope coefficient per labor-hour?
a. $4.67
b. $3.76
c. $2.40
d. $0.42
Click here for the SOLUTION
Multiple Choice
For Carroll Company, labor-hours are 12,500 and wages $47,000 at the high point of the relevant range, and labor-hours are 7,500 and wages $35,000 at the low point of the relevant range.
What is the slope coefficient per labor-hour?
a. $4.67
b. $3.76
c. $2.40
d. $0.42
Click here for the SOLUTION
Saturday, June 25, 2011
What is the estimate of the total cost when 300 machine-hours are used?
ACCOUNTING
Multiple Choice
The Hunter Company uses the high-low method to estimate the cost function. The information for 20x3 is provided below:
Machine-hours Labor Costs
Highest observation of cost driver 400 $10,000
Lowest observation of cost driver 240 $ 6,800
What is the estimate of the total cost when 300 machine-hours are used?
a. $2,000
b. $4,000
c. $6,000
d. $8,000
Click here for the SOLUTION
Multiple Choice
The Hunter Company uses the high-low method to estimate the cost function. The information for 20x3 is provided below:
Machine-hours Labor Costs
Highest observation of cost driver 400 $10,000
Lowest observation of cost driver 240 $ 6,800
What is the estimate of the total cost when 300 machine-hours are used?
a. $2,000
b. $4,000
c. $6,000
d. $8,000
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What is the constant for the estimating cost equation?
ACCOUNTING
Multiple Choice
The Hunter Company uses the high-low method to estimate the cost function. The information for 20x3 is provided below:
Machine-hours Labor Costs
Highest observation of cost driver 400 $10,000
Lowest observation of cost driver 240 $ 6,800
What is the constant for the estimating cost equation?
a. $2,000
b. $6,800
c. $8,000
d. $10,000
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Multiple Choice
The Hunter Company uses the high-low method to estimate the cost function. The information for 20x3 is provided below:
Machine-hours Labor Costs
Highest observation of cost driver 400 $10,000
Lowest observation of cost driver 240 $ 6,800
What is the constant for the estimating cost equation?
a. $2,000
b. $6,800
c. $8,000
d. $10,000
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What is the slope coefficient per machine-hour?
ACCOUNTING
Multiple Choice
The Hunter Company uses the high-low method to estimate the cost function. The information for 20x3 is provided below:
Machine-hours Labor Costs
Highest observation of cost driver 400 $10,000
Lowest observation of cost driver 240 $ 6,800
What is the slope coefficient per machine-hour?
a. $28.33
b. $00.05
c. $20.00
d. $25.00
Click here for the SOLUTION
Multiple Choice
The Hunter Company uses the high-low method to estimate the cost function. The information for 20x3 is provided below:
Machine-hours Labor Costs
Highest observation of cost driver 400 $10,000
Lowest observation of cost driver 240 $ 6,800
What is the slope coefficient per machine-hour?
a. $28.33
b. $00.05
c. $20.00
d. $25.00
Click here for the SOLUTION
The slope of the line of regression is
ACCOUNTING
Multiple Choice
The slope of the line of regression is
a. the rate at which the dependent variable varies.
b. the rate at which the independent variable varies.
c. the level of total fixed costs.
d. the level of total variable costs.
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Multiple Choice
The slope of the line of regression is
a. the rate at which the dependent variable varies.
b. the rate at which the independent variable varies.
c. the level of total fixed costs.
d. the level of total variable costs.
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Simple regression differs from multiple regression in that
ACCOUNTING
Multiple Choice
Simple regression differs from multiple regression in that
a. multiple regression uses all available data to estimate the cost function, whereas simple regression only uses simple data.
b. simple regression is limited to the use of only the dependent variables and multiple regression can use both dependent and independent variables.
c. simple regression uses only one independent variable and multiple regression uses more than one independent variable.
d. simple regression uses only one dependent variable and multiple regression uses more than one dependent variable.
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Multiple Choice
Simple regression differs from multiple regression in that
a. multiple regression uses all available data to estimate the cost function, whereas simple regression only uses simple data.
b. simple regression is limited to the use of only the dependent variables and multiple regression can use both dependent and independent variables.
c. simple regression uses only one independent variable and multiple regression uses more than one independent variable.
d. simple regression uses only one dependent variable and multiple regression uses more than one dependent variable.
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Regression analysis
ACCOUNTING
Multiple Choice
Regression analysis
a. is simple to compute.
b. measures the change in a dependent variable associated with one or more independent variables.
c. is mathematical so it does not require an understanding of operations.
d. uses the constant to measure goodness of fit.
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Multiple Choice
Regression analysis
a. is simple to compute.
b. measures the change in a dependent variable associated with one or more independent variables.
c. is mathematical so it does not require an understanding of operations.
d. uses the constant to measure goodness of fit.
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Put the following steps in order for using the high-low method of estimating a cost function:
ACCOUNTING
Multiple Choice
Put the following steps in order for using the high-low method of estimating a cost function:
A = Identify the cost function
B = Calculate the constant
C = Calculate the slope coefficient
D = Identify the highest and lowest observed values
a. D C A B
b. C D A B
c. A D C B
d. D C B A
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Multiple Choice
Put the following steps in order for using the high-low method of estimating a cost function:
A = Identify the cost function
B = Calculate the constant
C = Calculate the slope coefficient
D = Identify the highest and lowest observed values
a. D C A B
b. C D A B
c. A D C B
d. D C B A
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The high-low method
ACCOUNTING
Multiple Choice
The high-low method
a. easily handles estimating the relationship between the dependent variable and two or more independent variables.
b. is more accurate than the regression method.
c. calculates the slope coefficient using only two observed values within the relevant range.
d. uses the residual term to measure goodness of fit.
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Multiple Choice
The high-low method
a. easily handles estimating the relationship between the dependent variable and two or more independent variables.
b. is more accurate than the regression method.
c. calculates the slope coefficient using only two observed values within the relevant range.
d. uses the residual term to measure goodness of fit.
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When using the high-low method, the two observations used are the high and low observations
ACCOUNTING
Multiple Choice
When using the high-low method, the two observations used are the high and low observations
a. of the cost driver.
b. of the dependent variables.
c. of the slope coefficient.
b. of the residual term.
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Multiple Choice
When using the high-low method, the two observations used are the high and low observations
a. of the cost driver.
b. of the dependent variables.
c. of the slope coefficient.
b. of the residual term.
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Time-series data analysis includes
ACCOUNTING
Multiple Choice
Time-series data analysis includes
a. using a variety of time periods to measure the dependent variable.
b. using the highest and lowest observation.
c. observing different entities during the same time period.
d. comparing information in different cost pools.
Click here for the SOLUTION
Multiple Choice
Time-series data analysis includes
a. using a variety of time periods to measure the dependent variable.
b. using the highest and lowest observation.
c. observing different entities during the same time period.
d. comparing information in different cost pools.
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Cross-sectional data analysis includes
ACCOUNTING
Multiple Choice
Cross-sectional data analysis includes
a. using a variety of time periods to measure the dependent variable.
b. using the highest and lowest observation.
c. observing different entities during the same time period.
d. comparing information in different cost pools.
Click here for the SOLUTION
Multiple Choice
Cross-sectional data analysis includes
a. using a variety of time periods to measure the dependent variable.
b. using the highest and lowest observation.
c. observing different entities during the same time period.
d. comparing information in different cost pools.
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A plot of data that results in bunched points with little slope generally indicates
ACCOUNTING
Multiple Choice
A plot of data that results in bunched points with little slope generally indicates
a. a strong relationship.
b. a weak relationship.
c. a positive relationship.
d. a negative relationship.
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Multiple Choice
A plot of data that results in bunched points with little slope generally indicates
a. a strong relationship.
b. a weak relationship.
c. a positive relationship.
d. a negative relationship.
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Collecting data on the dependent variable and the cost driver may include
ACCOUNTING
Multiple Choice
Collecting data on the dependent variable and the cost driver may include
a. interviews with managers.
b. collecting data over a long period of time.
c. collecting data from different entities over the same period of time.
d. all of the above.
Click here for the SOLUTION
Multiple Choice
Collecting data on the dependent variable and the cost driver may include
a. interviews with managers.
b. collecting data over a long period of time.
c. collecting data from different entities over the same period of time.
d. all of the above.
Click here for the SOLUTION
All individual cost items included in the dependent variable should
ACCOUNTING
Multiple Choice
All individual cost items included in the dependent variable should
a. have the same cost driver.
b. have a cause-and-effect relationship with the independent variable.
c. have an economically plausible relationship with the independent variable.
d. include all of the above.
Click here for the SOLUTION
Multiple Choice
All individual cost items included in the dependent variable should
a. have the same cost driver.
b. have a cause-and-effect relationship with the independent variable.
c. have an economically plausible relationship with the independent variable.
d. include all of the above.
Click here for the SOLUTION
Place the following steps in order for estimating a cost function using quantitative analysis:
ACCOUNTING
Multiple Choice
Place the following steps in order for estimating a cost function using quantitative analysis:
A = Plot the data
B = Estimate the cost function
C = Choose the dependent variable
D = Identify the cost driver
a. D C A B
b. C D A B
c. A D C B
d. D C B A
Click here for the SOLUTION
Multiple Choice
Place the following steps in order for estimating a cost function using quantitative analysis:
A = Plot the data
B = Estimate the cost function
C = Choose the dependent variable
D = Identify the cost driver
a. D C A B
b. C D A B
c. A D C B
d. D C B A
Click here for the SOLUTION
How many separate cost pools should be formed given the following information:
ACCOUNTING
Multiple Choice
How many separate cost pools should be formed given the following information:
Cost Cost driver
Postage costs # of brochures mailed
Printing and paper costs # of brochures mailed
Quality control costs # of inspections
Customer service costs # of customers served
a. 1 cost pool
b. 2 cost pools
c. 3 cost pools
d. 4 cost pools
Click here for the SOLUTION
Multiple Choice
How many separate cost pools should be formed given the following information:
Cost Cost driver
Postage costs # of brochures mailed
Printing and paper costs # of brochures mailed
Quality control costs # of inspections
Customer service costs # of customers served
a. 1 cost pool
b. 2 cost pools
c. 3 cost pools
d. 4 cost pools
Click here for the SOLUTION
The independent variable
ACCOUNTING
Multiple Choice
The independent variable
a. is also referred to as the cost driver
b. may also be called the cost-allocation base if referring to an indirect cost
c. should have an economically plausible relationship with the dependent variable
d. includes all of the above
Click here for the SOLUTION
Multiple Choice
The independent variable
a. is also referred to as the cost driver
b. may also be called the cost-allocation base if referring to an indirect cost
c. should have an economically plausible relationship with the dependent variable
d. includes all of the above
Click here for the SOLUTION
The cost to be predicted is referred to as the
ACCOUNTING
Multiple Choice
The cost to be predicted is referred to as the
a. independent variable
b. dependent variable
c. cost driver
d. regression
Click here for the SOLUTION
Multiple Choice
The cost to be predicted is referred to as the
a. independent variable
b. dependent variable
c. cost driver
d. regression
Click here for the SOLUTION
Which cost estimation method is being used by Penny’s TV and Appliance Store?
ACCOUNTING
Multiple Choice
Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20x3 operations.
Sales (2,000 televisions) $ 900,000
Cost of goods sold 400,000
Store manager's salary per year 70,000
Operating costs per year 157,000
Advertising and promotion per year 15,000
Commissions (4% of sales) 36,000
Which cost estimation method is being used by Penny’s TV and Appliance Store?
a. The industrial engineering method
b. The conference method
c. The account analysis method
d. The quantitative analysis method
Click here for the SOLUTION
Multiple Choice
Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20x3 operations.
Sales (2,000 televisions) $ 900,000
Cost of goods sold 400,000
Store manager's salary per year 70,000
Operating costs per year 157,000
Advertising and promotion per year 15,000
Commissions (4% of sales) 36,000
Which cost estimation method is being used by Penny’s TV and Appliance Store?
a. The industrial engineering method
b. The conference method
c. The account analysis method
d. The quantitative analysis method
Click here for the SOLUTION
What are the estimated total costs if Penny’s expects to sell 3,000 units next year?
ACCOUNTING
Multiple Choice
Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20x3 operations.
Sales (2,000 televisions) $ 900,000
Cost of goods sold 400,000
Store manager's salary per year 70,000
Operating costs per year 157,000
Advertising and promotion per year 15,000
Commissions (4% of sales) 36,000
What are the estimated total costs if Penny’s expects to sell 3,000 units next year?
a. $896,000
b. $678,000
c. $1,017,000
d. $799,000
Click here for the SOLUTION
Multiple Choice
Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20x3 operations.
Sales (2,000 televisions) $ 900,000
Cost of goods sold 400,000
Store manager's salary per year 70,000
Operating costs per year 157,000
Advertising and promotion per year 15,000
Commissions (4% of sales) 36,000
What are the estimated total costs if Penny’s expects to sell 3,000 units next year?
a. $896,000
b. $678,000
c. $1,017,000
d. $799,000
Click here for the SOLUTION
Thursday, June 23, 2011
What were total fixed costs for 20x3?
ACCOUNTING
Multiple Choice
Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20x3 operations.
Sales (2,000 televisions) $ 900,000
Cost of goods sold 400,000
Store manager's salary per year 70,000
Operating costs per year 157,000
Advertising and promotion per year 15,000
Commissions (4% of sales) 36,000
What were total fixed costs for 20x3?
a. $678,000
b. $436,000
c. $242,000
d. $227,000
Click here for the SOLUTION
Multiple Choice
Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20x3 operations.
Sales (2,000 televisions) $ 900,000
Cost of goods sold 400,000
Store manager's salary per year 70,000
Operating costs per year 157,000
Advertising and promotion per year 15,000
Commissions (4% of sales) 36,000
What were total fixed costs for 20x3?
a. $678,000
b. $436,000
c. $242,000
d. $227,000
Click here for the SOLUTION
What was the variable cost per unit sold for 20x3?
ACCOUNTING
Multiple Choice
Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20x3 operations.
Sales (2,000 televisions) $ 900,000
Cost of goods sold 400,000
Store manager's salary per year 70,000
Operating costs per year 157,000
Advertising and promotion per year 15,000
Commissions (4% of sales) 36,000
What was the variable cost per unit sold for 20x3?
a. $18
b. $218
c. $339
d. $200
Click here for the SOLUTION
Multiple Choice
Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20x3 operations.
Sales (2,000 televisions) $ 900,000
Cost of goods sold 400,000
Store manager's salary per year 70,000
Operating costs per year 157,000
Advertising and promotion per year 15,000
Commissions (4% of sales) 36,000
What was the variable cost per unit sold for 20x3?
a. $18
b. $218
c. $339
d. $200
Click here for the SOLUTION
Which cost estimation method is being used by Jordan Company?
ACCOUNTING
Multiple Choice
At the Jordan Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $160,000.
Department A B C
Number of employees 30 270 100
The number of new hires 8 12 5
Which cost estimation method is being used by Jordan Company?
a. The industrial engineering method
b. The conference method
c. The account analysis method
d. The quantitative analysis method
Click here for the SOLUTION
Multiple Choice
At the Jordan Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $160,000.
Department A B C
Number of employees 30 270 100
The number of new hires 8 12 5
Which cost estimation method is being used by Jordan Company?
a. The industrial engineering method
b. The conference method
c. The account analysis method
d. The quantitative analysis method
Click here for the SOLUTION
If number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A?
ACCOUNTING
Multiple Choice
At the Jordan Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $160,000.
Department A B C
Number of employees 30 270 100
The number of new hires 8 12 5
If number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A?
a. $12,000
b. $5,333
c. $51,200
d. $20,000
Click here for the SOLUTION
Multiple Choice
At the Jordan Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $160,000.
Department A B C
Number of employees 30 270 100
The number of new hires 8 12 5
If number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A?
a. $12,000
b. $5,333
c. $51,200
d. $20,000
Click here for the SOLUTION
If number of employees is considered the cost driver, what amount of personnel costs will be allocated to Department A?
ACCOUNTING
Multiple Choice
At the Jordan Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $160,000.
Department A B C
Number of employees 30 270 100
The number of new hires 8 12 5
If number of employees is considered the cost driver, what amount of personnel costs will be allocated to Department A?
a. $12,000
b. $5,333
c. $51,200
d. $20,000
Click here for the SOLUTION
Multiple Choice
At the Jordan Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $160,000.
Department A B C
Number of employees 30 270 100
The number of new hires 8 12 5
If number of employees is considered the cost driver, what amount of personnel costs will be allocated to Department A?
a. $12,000
b. $5,333
c. $51,200
d. $20,000
Click here for the SOLUTION
Which cost estimation method may utilize time-and-motion studies to analyze the relationship between inputs and outputs in physical terms?
ACCOUNTING
Multiple Choice
Which cost estimation method may utilize time-and-motion studies to analyze the relationship between inputs and outputs in physical terms?
a. The account analysis method
b. The conference method
c. The industrial engineering method
d. The quantitative analysis method
Click here for the SOLUTION
Multiple Choice
Which cost estimation method may utilize time-and-motion studies to analyze the relationship between inputs and outputs in physical terms?
a. The account analysis method
b. The conference method
c. The industrial engineering method
d. The quantitative analysis method
Click here for the SOLUTION
Which cost estimation method uses a formal mathematical method to develop cost functions based on past data?
ACCOUNTING
Multiple Choice
Which cost estimation method uses a formal mathematical method to develop cost functions based on past data?
a. The account analysis method
b. The conference method
c. The industrial engineering method
d. The quantitative analysis method
Click here for the SOLUTION
Multiple Choice
Which cost estimation method uses a formal mathematical method to develop cost functions based on past data?
a. The account analysis method
b. The conference method
c. The industrial engineering method
d. The quantitative analysis method
Click here for the SOLUTION
Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods?
ACCOUNTING
Multiple Choice
Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods?
a. The account analysis method
b. The conference method
c. The industrial engineering method
d. The quantitative analysis method
Click here for the SOLUTION
Multiple Choice
Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods?
a. The account analysis method
b. The conference method
c. The industrial engineering method
d. The quantitative analysis method
Click here for the SOLUTION
Gathering cost information through observations and interviews from departments within an organization is known as
ACCOUNTING
Multiple Choice
Gathering cost information through observations and interviews from departments within an organization is known as
a. the account analysis method
b. the conference method
c. the industrial engineering method
d. the quantitative analysis method
Click here for the SOLUTION
Multiple Choice
Gathering cost information through observations and interviews from departments within an organization is known as
a. the account analysis method
b. the conference method
c. the industrial engineering method
d. the quantitative analysis method
Click here for the SOLUTION
Quantitative analysis methods estimate cost functions
ACCOUNTING
Multiple Choice
Quantitative analysis methods estimate cost functions
a. which depend on the experience and judgment of the analyst for accuracy
b. based on analysis and opinions gathered from various departments
c. using significant amounts of historical data
d. using the pooling of knowledge from each value chain function
Click here for the SOLUTION
Multiple Choice
Quantitative analysis methods estimate cost functions
a. which depend on the experience and judgment of the analyst for accuracy
b. based on analysis and opinions gathered from various departments
c. using significant amounts of historical data
d. using the pooling of knowledge from each value chain function
Click here for the SOLUTION
The account analysis method estimates cost functions
ACCOUNTING
Multiple Choice
The account analysis method estimates cost functions
a. by classifying cost accounts as variable, fixed, or mixed based on qualitative analysis.
b. using time-and-motion studies.
c. at a high cost, which is therefore seldom used.
d. in a manner that cannot be usefully combined with any other cost estimation methods.
Click here for the SOLUTION
Multiple Choice
The account analysis method estimates cost functions
a. by classifying cost accounts as variable, fixed, or mixed based on qualitative analysis.
b. using time-and-motion studies.
c. at a high cost, which is therefore seldom used.
d. in a manner that cannot be usefully combined with any other cost estimation methods.
Click here for the SOLUTION
The conference method estimates cost functions
ACCOUNTING
Multiple Choice
The conference method estimates cost functions
a. using quantitative methods that can be very time consuming and costly.
b. based on analysis and opinions gathered from various departments.
c. using time-and-motion studies.
d. by mathematically analyzing the relationship between inputs and outputs in physical terms.
Click here for the SOLUTION
Multiple Choice
The conference method estimates cost functions
a. using quantitative methods that can be very time consuming and costly.
b. based on analysis and opinions gathered from various departments.
c. using time-and-motion studies.
d. by mathematically analyzing the relationship between inputs and outputs in physical terms.
Click here for the SOLUTION
The industrial engineering method estimates cost functions
ACCOUNTING
Multiple Choice
The industrial engineering method estimates cost functions
a. based on analysis and opinions gathered from various departments
b. quickly while incurring little cost
c. using qualitative rather than quantitative analysis
d. by analyzing the relationship between inputs and outputs in physical terms
Click here for the SOLUTION
Multiple Choice
The industrial engineering method estimates cost functions
a. based on analysis and opinions gathered from various departments
b. quickly while incurring little cost
c. using qualitative rather than quantitative analysis
d. by analyzing the relationship between inputs and outputs in physical terms
Click here for the SOLUTION
Which of the following is an equation of a variable cost function?
ACCOUNTING
Multiple Choice
Which of the following is an equation of a variable cost function?
a. y = b
b. y = a + bX
c. y = bX
d. y = a
Click here for the SOLUTION
Multiple Choice
Which of the following is an equation of a variable cost function?
a. y = b
b. y = a + bX
c. y = bX
d. y = a
Click here for the SOLUTION
The cost function y = 8,000 + 4X
ACCOUNTING
Multiple Choice
The cost function y = 8,000 + 4X
a. represents a mixed cost
b. will intersect the y-axis at 4
c. has a slope coefficient of 8,000
d. is a curved line
d. represents a fixed cost
Click here for the SOLUTION
Multiple Choice
The cost function y = 8,000 + 4X
a. represents a mixed cost
b. will intersect the y-axis at 4
c. has a slope coefficient of 8,000
d. is a curved line
d. represents a fixed cost
Click here for the SOLUTION
The cost function y = 1,000 + 5X
ACCOUNTING
Multiple Choice
The cost function y = 1,000 + 5X
a. has a slope coefficient of 1,000
b. has an intercept of 5
c. is a straight line
d. represents a fixed cost
Click here for the SOLUTION
Multiple Choice
The cost function y = 1,000 + 5X
a. has a slope coefficient of 1,000
b. has an intercept of 5
c. is a straight line
d. represents a fixed cost
Click here for the SOLUTION
A linear cost function can represent
ACCOUNTING
Multiple Choice
A linear cost function can represent
a. mixed cost behaviors
b. fixed cost behaviors
c. variable cost behaviors
d. all of the above cost behaviors
Click here for the SOLUTION
Multiple Choice
A linear cost function can represent
a. mixed cost behaviors
b. fixed cost behaviors
c. variable cost behaviors
d. all of the above cost behaviors
Click here for the SOLUTION
For January, the cost components of a picture frame include $0.35 for the glass, $.65 for the wooden frame, and $0.80 for assembly
ACCOUNTING
Multiple Choice
For January, the cost components of a picture frame include $0.35 for the glass, $.65 for the wooden frame, and $0.80 for assembly. The assembly desk and tools cost $400. 1,000 frames are expected to be produced in the coming year. What cost function best represents these costs?
a. y = 1.80 + 400X
b. y = 400 +1.80X
c. y = 2.20 + 1,000X
d. y = 1.00 + 400X
Click here for the SOLUTION
Multiple Choice
For January, the cost components of a picture frame include $0.35 for the glass, $.65 for the wooden frame, and $0.80 for assembly. The assembly desk and tools cost $400. 1,000 frames are expected to be produced in the coming year. What cost function best represents these costs?
a. y = 1.80 + 400X
b. y = 400 +1.80X
c. y = 2.20 + 1,000X
d. y = 1.00 + 400X
Click here for the SOLUTION
Dougherty Company employs 20 individuals
ACCOUNTING
Multiple Choice
Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified?
a. Variable
b. Mixed
c. A variable cost within a relevant range
d. A fixed cost within a relevant range
Click here for the SOLUTION
Multiple Choice
Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified?
a. Variable
b. Mixed
c. A variable cost within a relevant range
d. A fixed cost within a relevant range
Click here for the SOLUTION
Which of the following does NOT represent a cause-and-effect relationship?
ACCOUNTING
Multiple Choice
Which of the following does NOT represent a cause-and-effect relationship?
a. Material costs increase as the number of units produced increases
b. A company is charged 40 cents for each brochure printed and mailed.
c. Utility costs increase at the same time that insurance costs increase
d. It makes sense that if a complex product has a large number of parts it will take longer to assemble than a simple product with fewer parts
Click here for the SOLUTION
Multiple Choice
Which of the following does NOT represent a cause-and-effect relationship?
a. Material costs increase as the number of units produced increases
b. A company is charged 40 cents for each brochure printed and mailed.
c. Utility costs increase at the same time that insurance costs increase
d. It makes sense that if a complex product has a large number of parts it will take longer to assemble than a simple product with fewer parts
Click here for the SOLUTION
A high correlation between two variables s and t indicates that
ACCOUNTING
Multiple Choice
A high correlation between two variables s and t indicates that
a. s may cause t, or t may cause s
b. they both may be affected by a third variable
c. the correlation may be due to random chance
d. all of the above are true
Click here for the SOLUTION
Multiple Choice
A high correlation between two variables s and t indicates that
a. s may cause t, or t may cause s
b. they both may be affected by a third variable
c. the correlation may be due to random chance
d. all of the above are true
Click here for the SOLUTION
Which of the following statements related to assumptions about estimating linear cost functions is FALSE?
ACCOUNTING
Multiple Choice
Which of the following statements related to assumptions about estimating linear cost functions is FALSE?
a. Variations in a single cost driver explain variations in total costs
b. A cost object is anything for which a separate measurement of costs is desired
c. A linear function approximates cost behavior within the relevant range of the cost driver
d. A high correlation between two variables ensures that a cause-and-effect relationship exists
Click here for the SOLUTION
Multiple Choice
Which of the following statements related to assumptions about estimating linear cost functions is FALSE?
a. Variations in a single cost driver explain variations in total costs
b. A cost object is anything for which a separate measurement of costs is desired
c. A linear function approximates cost behavior within the relevant range of the cost driver
d. A high correlation between two variables ensures that a cause-and-effect relationship exists
Click here for the SOLUTION
Generally a coefficient of determination (r2) that is less than 0.30 indicates a goodness of fit
ACCOUNTING
True or False
Generally a coefficient of determination (r2) that is less than 0.30 indicates a goodness of fit
Click here for the SOLUTION
True or False
Generally a coefficient of determination (r2) that is less than 0.30 indicates a goodness of fit
Click here for the SOLUTION
y = a + bX represents the general form of the linear cost function
ACCOUNTING
True or False
y = a + bX represents the general form of the linear cost function
Click here for the SOLUTION
True or False
y = a + bX represents the general form of the linear cost function
Click here for the SOLUTION
The coefficient of determination (r2) measures the percentage of variation in Y explained by X (the independent variable)
ACCOUNTING
True or False
The coefficient of determination (r2) measures the percentage of variation in Y explained by X (the independent variable)
Click here for the SOLUTION
True or False
The coefficient of determination (r2) measures the percentage of variation in Y explained by X (the independent variable)
Click here for the SOLUTION
Inflation is a fact, and therefore its influence should not be removed from the data
ACCOUNTING
True or False
Inflation is a fact, and therefore its influence should not be removed from the data
Click here for the SOLUTION
True or False
Inflation is a fact, and therefore its influence should not be removed from the data
Click here for the SOLUTION
Misinterpretation of data can arise when fixed costs are reported on a per unit basis
ACCOUNTING
True or False
Misinterpretation of data can arise when fixed costs are reported on a per unit basis
Click here for the SOLUTION
True or False
Misinterpretation of data can arise when fixed costs are reported on a per unit basis
Click here for the SOLUTION
Data collection problems can arise when data is recorded manually rather than electronically
ACCOUNTING
True or False
Data collection problems can arise when data is recorded manually rather than electronically
Click here for the SOLUTION
True or False
Data collection problems can arise when data is recorded manually rather than electronically
Click here for the SOLUTION
The incremental unit-time learning model with a 90% learning curve indicates that if it takes 100 minutes to manufacture the first unit of a new model
ACCOUNTING
True or False
The incremental unit-time learning model with a 90% learning curve indicates that if it takes 100 minutes to manufacture the first unit of a new model, then the second unit will take only 90 minutes to manufacture
Click here for the SOLUTION
True or False
The incremental unit-time learning model with a 90% learning curve indicates that if it takes 100 minutes to manufacture the first unit of a new model, then the second unit will take only 90 minutes to manufacture
Click here for the SOLUTION
The cumulative average-time learning model with a 90% learning curve indicates that if it takes 100 minutes to manufacture the first unit of a new
ACCOUNTING
True or False
The cumulative average-time learning model with a 90% learning curve indicates that if it takes 100 minutes to manufacture the first unit of a new model, then the second unit will take only 90 minutes to manufacture
Click here for the SOLUTION
True or False
The cumulative average-time learning model with a 90% learning curve indicates that if it takes 100 minutes to manufacture the first unit of a new model, then the second unit will take only 90 minutes to manufacture
Click here for the SOLUTION
It is appropriate to incorporate expected learning-curve efficiencies when evaluating performance
ACCOUNTING
True or False
It is appropriate to incorporate expected learning-curve efficiencies when evaluating performance
Click here for the SOLUTION
True or False
It is appropriate to incorporate expected learning-curve efficiencies when evaluating performance
Click here for the SOLUTION
When new products are introduced, learning-curve effects can have a major influence on production scheduling
ACCOUNTING
True or False
When new products are introduced, learning-curve effects can have a major influence on production scheduling
Click here for the SOLUTION
True or False
When new products are introduced, learning-curve effects can have a major influence on production scheduling
Click here for the SOLUTION
Plotting learning curve observations is helpful in selecting the appropriate learning curve model
ACCOUNTING
True or False
Plotting learning curve observations is helpful in selecting the appropriate learning curve model
Click here for the SOLUTION
True or False
Plotting learning curve observations is helpful in selecting the appropriate learning curve model
Click here for the SOLUTION
A learning curve measures the effect of learning on efficiency
ACCOUNTING
True or False
A learning curve measures the effect of learning on efficiency
Click here for the SOLUTION
True or False
A learning curve measures the effect of learning on efficiency
Click here for the SOLUTION
An example of a step variable-cost function is the cost of material-handling labor when inputs are acquired in discrete quantities
ACCOUNTING
True or False
An example of a step variable-cost function is the cost of material-handling labor when inputs are acquired in discrete quantities
Click here for the SOLUTION
True or False
An example of a step variable-cost function is the cost of material-handling labor when inputs are acquired in discrete quantities
Click here for the SOLUTION
Step fixed-cost functions are variable over the long run
ACCOUNTING
True or False
Step fixed-cost functions are variable over the long run
Click here for the SOLUTION
True or False
Step fixed-cost functions are variable over the long run
Click here for the SOLUTION
A step cost function is an example of a nonlinear cost function
ACCOUNTING
True or False
A step cost function is an example of a nonlinear cost function
Click here for the SOLUTION
True or False
A step cost function is an example of a nonlinear cost function
Click here for the SOLUTION
Economic plausibility is an important criterion for choosing a cost driver
ACCOUNTING
True or False
Economic plausibility is an important criterion for choosing a cost driver
Click here for the SOLUTION
True or False
Economic plausibility is an important criterion for choosing a cost driver
Click here for the SOLUTION
When using an activity-based costing system, a batch-level cost must have a batch-level cost driver
ACCOUNTING
True or False
When using an activity-based costing system, a batch-level cost must have a batch-level cost driver
Click here for the SOLUTION
True or False
When using an activity-based costing system, a batch-level cost must have a batch-level cost driver
Click here for the SOLUTION
A flat or slightly sloped regression line indicates a strong relationship
ACCOUNTING
True or False
A flat or slightly sloped regression line indicates a strong relationship
Click here for the SOLUTION
True or False
A flat or slightly sloped regression line indicates a strong relationship
Click here for the SOLUTION
Choosing an economically plausible cost driver for indirect costs is fairly simple and knowledge of operations is unnecessary
ACCOUNTING
True or False
Choosing an economically plausible cost driver for indirect costs is fairly simple and knowledge of operations is unnecessary
Click here for the SOLUTION
True or False
Choosing an economically plausible cost driver for indirect costs is fairly simple and knowledge of operations is unnecessary
Click here for the SOLUTION
The smaller the vertical difference between actual costs and predicted costs the better the goodness of fit
ACCOUNTING
True or False
The smaller the vertical difference between actual costs and predicted costs the better the goodness of fit
Click here for the SOLUTION
True or False
The smaller the vertical difference between actual costs and predicted costs the better the goodness of fit
Click here for the SOLUTION
Machine-hours is a more economically plausible cost driver of machine maintenance than number of direct manufacturing labor-hours
ACCOUNTING
True or False
Machine-hours is a more economically plausible cost driver of machine maintenance than number of direct manufacturing labor-hours
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True or False
Machine-hours is a more economically plausible cost driver of machine maintenance than number of direct manufacturing labor-hours
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If inaccurate cost estimates are too high, then a company may unknowingly reward a manager for poor performance
ACCOUNTING
True or False
If inaccurate cost estimates are too high, then a company may unknowingly reward a manager for poor performance
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True or False
If inaccurate cost estimates are too high, then a company may unknowingly reward a manager for poor performance
Click here for the SOLUTION
The high-low method is more accurate than the regression method of estimating a cost function
ACCOUNTING
True or False
The high-low method is more accurate than the regression method of estimating a cost function
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True or False
The high-low method is more accurate than the regression method of estimating a cost function
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A positive slope of a regression line indicates that total costs are lower for higher values of the cost driver
ACCOUNTING
True or False
A positive slope of a regression line indicates that total costs are lower for higher values of the cost driver
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True or False
A positive slope of a regression line indicates that total costs are lower for higher values of the cost driver
Click here for the SOLUTION
The y-intercept of a linear cost function is an accurate cost assessment of using zero machine-hours, even if zero machine-hours is outside of the rel
ACCOUNTING
True or False
The y-intercept of a linear cost function is an accurate cost assessment of using zero machine-hours, even if zero machine-hours is outside of the relevant range
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True or False
The y-intercept of a linear cost function is an accurate cost assessment of using zero machine-hours, even if zero machine-hours is outside of the relevant range
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Regression analysis relies on only two observations to estimate a linear cost function
ACCOUNTING
True or False
Regression analysis relies on only two observations to estimate a linear cost function
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True or False
Regression analysis relies on only two observations to estimate a linear cost function
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The most common forms of quantitative analysis are the conference method and the account analysis method
ACCOUNTING
True or False
The most common forms of quantitative analysis are the conference method and the account analysis method
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True or False
The most common forms of quantitative analysis are the conference method and the account analysis method
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Evidence of relationships and extreme observations are highlighted when costs and their cost drivers are plotted graphically
ACCOUNTING
True or False
Evidence of relationships and extreme observations are highlighted when costs and their cost drivers are plotted graphically
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True or False
Evidence of relationships and extreme observations are highlighted when costs and their cost drivers are plotted graphically
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An example of time-series data is to compile maintenance costs of twelve different manufacturing plants incurred during 20x3
ACCOUNTING
True or False
An example of time-series data is to compile maintenance costs of twelve different manufacturing plants incurred during 20x3
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True or False
An example of time-series data is to compile maintenance costs of twelve different manufacturing plants incurred during 20x3
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Wednesday, June 22, 2011
Individual cost items included in the dependent variable should have the same cost driver or more than one cost function should be estimated
ACCOUNTING
True or False
Individual cost items included in the dependent variable should have the same cost driver or more than one cost function should be estimated
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True or False
Individual cost items included in the dependent variable should have the same cost driver or more than one cost function should be estimated
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The industrial engineering method uses a formal mathematical method to identify cause-and-effect relationships among past data observations
ACCOUNTING
True or False
The industrial engineering method uses a formal mathematical method to identify cause-and-effect relationships among past data observations
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True or False
The industrial engineering method uses a formal mathematical method to identify cause-and-effect relationships among past data observations
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The account analysis method of cost estimation classifies account costs as fixed, mixed, or variable using qualitative judgments
ACCOUNTING
True or False
The account analysis method of cost estimation classifies account costs as fixed, mixed, or variable using qualitative judgments
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True or False
The account analysis method of cost estimation classifies account costs as fixed, mixed, or variable using qualitative judgments
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The industrial engineering method of cost estimation is based on opinions from various departments and is quick and of low cost to apply
ACCOUNTING
True or False
The industrial engineering method of cost estimation is based on opinions from various departments and is quick and of low cost to apply
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True or False
The industrial engineering method of cost estimation is based on opinions from various departments and is quick and of low cost to apply
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An example of a physical cause-and-effect relationship is when additional units of production increase total direct material costs
ACCOUNTING
True or False
An example of a physical cause-and-effect relationship is when additional units of production increase total direct material costs
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True or False
An example of a physical cause-and-effect relationship is when additional units of production increase total direct material costs
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It can be inferred that when there is a high correlation between two variables, one is the cause of the other
ACCOUNTING
True or False
It can be inferred that when there is a high correlation between two variables, one is the cause of the other
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True or False
It can be inferred that when there is a high correlation between two variables, one is the cause of the other
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Knowing the proper relevant range is essential to properly classify costs
ACCOUNTING
True or False
Knowing the proper relevant range is essential to properly classify costs
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True or False
Knowing the proper relevant range is essential to properly classify costs
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Any linear cost function can be graphed by knowing only the slope coefficient
ACCOUNTING
True or False
Any linear cost function can be graphed by knowing only the slope coefficient
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True or False
Any linear cost function can be graphed by knowing only the slope coefficient
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Outside of the relevant range, variable and fixed cost-behavior patterns may change
ACCOUNTING
True or False
Outside of the relevant range, variable and fixed cost-behavior patterns may change
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True or False
Outside of the relevant range, variable and fixed cost-behavior patterns may change
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The longer the time horizon, the more likely that a cost will have a fixed cost behavior
ACCOUNTING
True or False
The longer the time horizon, the more likely that a cost will have a fixed cost behavior
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True or False
The longer the time horizon, the more likely that a cost will have a fixed cost behavior
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In a graphical display of a cost function, the steepness of the slope represents the total amount of fixed costs
ACCOUNTING
True or False
In a graphical display of a cost function, the steepness of the slope represents the total amount of fixed costs
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True or False
In a graphical display of a cost function, the steepness of the slope represents the total amount of fixed costs
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A linear cost function can only represent fixed cost behavior
ACCOUNTING
True or False
A linear cost function can only represent fixed cost behavior
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True or False
A linear cost function can only represent fixed cost behavior
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One assumption frequently made in cost behavior estimation is that changes in total costs can be explained by changes in the level of a single
ACCOUNTING
True or False
One assumption frequently made in cost behavior estimation is that changes in total costs can be explained by changes in the level of a single activity
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True or False
One assumption frequently made in cost behavior estimation is that changes in total costs can be explained by changes in the level of a single activity
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Tuesday, June 21, 2011
Money and Capital Markets 10th Edition Solutions Manual
SOLUTIONS MANUAL
Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace, 10e, by Rose and Marquis Solutions Manual
Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace, 10th Edition, by Rose and Marquis Solutions Manual
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Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace, 10e, by Rose and Marquis Solutions Manual
Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace, 10th Edition, by Rose and Marquis Solutions Manual
Click here to DOWNLOAD
Sunday, June 19, 2011
What is the breakeven point in units using absorption costing if the units produced are actually 2,250?
ACCOUNTING
Multiple Choice
Greene Manufacturing incurred the following expenses during 20x2:
Fixed manufacturing costs $45,000
Fixed nonmanufacturing costs $35,000
Unit selling price $100
Total unit cost $40
Variable manufacturing cost rate $20
Units produced 1,340 units
What is the breakeven point in units using absorption costing if the units produced are actually 2,250?
a. 1,330 units
b. 1,000 units
c. 887 units
d. 583 units
Click here for the SOLUTION
Multiple Choice
Greene Manufacturing incurred the following expenses during 20x2:
Fixed manufacturing costs $45,000
Fixed nonmanufacturing costs $35,000
Unit selling price $100
Total unit cost $40
Variable manufacturing cost rate $20
Units produced 1,340 units
What is the breakeven point in units using absorption costing if the units produced are actually 2,250?
a. 1,330 units
b. 1,000 units
c. 887 units
d. 583 units
Click here for the SOLUTION
What will be the breakeven point in units if absorption costing is used?
ACCOUNTING
Multiple Choice
Greene Manufacturing incurred the following expenses during 20x2:
Fixed manufacturing costs $45,000
Fixed nonmanufacturing costs $35,000
Unit selling price $100
Total unit cost $40
Variable manufacturing cost rate $20
Units produced 1,340 units
What will be the breakeven point in units if absorption costing is used?
a. 1,330 units
b. 1,000 units
c. 887 units
d. 563 units
Click here for the SOLUTION
Multiple Choice
Greene Manufacturing incurred the following expenses during 20x2:
Fixed manufacturing costs $45,000
Fixed nonmanufacturing costs $35,000
Unit selling price $100
Total unit cost $40
Variable manufacturing cost rate $20
Units produced 1,340 units
What will be the breakeven point in units if absorption costing is used?
a. 1,330 units
b. 1,000 units
c. 887 units
d. 563 units
Click here for the SOLUTION
What will be the breakeven point if variable costing is used?
ACCOUNTING
Multiple Choice
Greene Manufacturing incurred the following expenses during 20x2:
Fixed manufacturing costs $45,000
Fixed nonmanufacturing costs $35,000
Unit selling price $100
Total unit cost $40
Variable manufacturing cost rate $20
Units produced 1,340 units
What will be the breakeven point if variable costing is used?
a. 1,334 units
b. 1,125 units
c. 1,000 units
d. 563 units
Click here for the SOLUTION
Multiple Choice
Greene Manufacturing incurred the following expenses during 20x2:
Fixed manufacturing costs $45,000
Fixed nonmanufacturing costs $35,000
Unit selling price $100
Total unit cost $40
Variable manufacturing cost rate $20
Units produced 1,340 units
What will be the breakeven point if variable costing is used?
a. 1,334 units
b. 1,125 units
c. 1,000 units
d. 563 units
Click here for the SOLUTION
What is absorption costing breakeven in units?
ACCOUNTING
Multiple Choice
The following information pertains to the Bean Company:
Selling price per unit $123
Standard fixed manufacturing costs per unit $60
Variable selling and administrative costs per unit $12
Standard variable manufacturing costs per unit $3
Fixed selling and administrative costs $48,000
Units produced 10,000 units
Units sold 9,600 units
What is absorption costing breakeven in units?
a. 917 units
b. 1,000 units
c. 5,838 units
d. 6,000 units
Click here for the SOLUTION
Multiple Choice
The following information pertains to the Bean Company:
Selling price per unit $123
Standard fixed manufacturing costs per unit $60
Variable selling and administrative costs per unit $12
Standard variable manufacturing costs per unit $3
Fixed selling and administrative costs $48,000
Units produced 10,000 units
Units sold 9,600 units
What is absorption costing breakeven in units?
a. 917 units
b. 1,000 units
c. 5,838 units
d. 6,000 units
Click here for the SOLUTION
What is variable costing breakeven in units?
ACCOUNTING
Multiple Choice
The following information pertains to the Bean Company:
Selling price per unit $123
Standard fixed manufacturing costs per unit $60
Variable selling and administrative costs per unit $12
Standard variable manufacturing costs per unit $3
Fixed selling and administrative costs $48,000
Units produced 10,000 units
Units sold 9,600 units
What is variable costing breakeven in units?
a. 833 units
b. 5,556 units
c. 5,838 units
d. 6,000 units
Click here for the SOLUTION
Multiple Choice
The following information pertains to the Bean Company:
Selling price per unit $123
Standard fixed manufacturing costs per unit $60
Variable selling and administrative costs per unit $12
Standard variable manufacturing costs per unit $3
Fixed selling and administrative costs $48,000
Units produced 10,000 units
Units sold 9,600 units
What is variable costing breakeven in units?
a. 833 units
b. 5,556 units
c. 5,838 units
d. 6,000 units
Click here for the SOLUTION
What are breakeven sales in units using absorption costing if the production units are actually 25,000?
ACCOUNTING
Multiple Choice
Ms. Andrea Chadwick, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 20x2 is as follows:
Total fixed manufacturing overhead $180,000
Total other fixed expenses $200,000
Total variable manufacturing expenses $120,000
Total other variable expenses $120,000
Units produced 30,000 units
Budgeted production 30,000 units
Units sold 25,000 units
Selling price $40
What are breakeven sales in units using absorption costing if the production units are actually 25,000?
a. 5,625 units
b. 6,667 units
c. 7,667 units
d. 8,846 units
Click here for the SOLUTION
Multiple Choice
Ms. Andrea Chadwick, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 20x2 is as follows:
Total fixed manufacturing overhead $180,000
Total other fixed expenses $200,000
Total variable manufacturing expenses $120,000
Total other variable expenses $120,000
Units produced 30,000 units
Budgeted production 30,000 units
Units sold 25,000 units
Selling price $40
What are breakeven sales in units using absorption costing if the production units are actually 25,000?
a. 5,625 units
b. 6,667 units
c. 7,667 units
d. 8,846 units
Click here for the SOLUTION
What are breakeven sales in units using absorption costing?
ACCOUNTING
Multiple Choice
Ms. Andrea Chadwick, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 20x2 is as follows:
Total fixed manufacturing overhead $180,000
Total other fixed expenses $200,000
Total variable manufacturing expenses $120,000
Total other variable expenses $120,000
Units produced 30,000 units
Budgeted production 30,000 units
Units sold 25,000 units
Selling price $40
What are breakeven sales in units using absorption costing?
a. 5,625 units
b. 6,667 units
c. 7,692 units
d. 8,000 unitss
Click here for the SOLUTION
Multiple Choice
Ms. Andrea Chadwick, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 20x2 is as follows:
Total fixed manufacturing overhead $180,000
Total other fixed expenses $200,000
Total variable manufacturing expenses $120,000
Total other variable expenses $120,000
Units produced 30,000 units
Budgeted production 30,000 units
Units sold 25,000 units
Selling price $40
What are breakeven sales in units using absorption costing?
a. 5,625 units
b. 6,667 units
c. 7,692 units
d. 8,000 unitss
Click here for the SOLUTION
What are breakeven sales in units using variable costing?
ACCOUNTING
Multiple Choice
Ms. Andrea Chadwick, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 20x2 is as follows:
Total fixed manufacturing overhead $180,000
Total other fixed expenses $200,000
Total variable manufacturing expenses $120,000
Total other variable expenses $120,000
Units produced 30,000 units
Budgeted production 30,000 units
Units sold 25,000 units
Selling price $40
What are breakeven sales in units using variable costing?
a. 5,625 units
b. 5,769 units
c. 11,875 units
d. 12,180 units
Click here for the SOLUTION
Multiple Choice
Ms. Andrea Chadwick, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 20x2 is as follows:
Total fixed manufacturing overhead $180,000
Total other fixed expenses $200,000
Total variable manufacturing expenses $120,000
Total other variable expenses $120,000
Units produced 30,000 units
Budgeted production 30,000 units
Units sold 25,000 units
Selling price $40
What are breakeven sales in units using variable costing?
a. 5,625 units
b. 5,769 units
c. 11,875 units
d. 12,180 units
Click here for the SOLUTION
There is not an output-level variance for variable costing, because
ACCOUNTING
Multiple Choice
There is not an output-level variance for variable costing, because
a. the inventory level decreased during the period.
b. the inventory level increased during the period.
c. fixed manufacturing overhead is allocated to work in process.
d. fixed manufacturing overhead is not allocated to work in process.
Click here for the SOLUTION
Multiple Choice
There is not an output-level variance for variable costing, because
a. the inventory level decreased during the period.
b. the inventory level increased during the period.
c. fixed manufacturing overhead is allocated to work in process.
d. fixed manufacturing overhead is not allocated to work in process.
Click here for the SOLUTION
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