Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
ACC 5361 ch 3 test 1
ACC 5361 TXst
| Question | Answer |
|---|---|
| Cost Behavior is the general term for describing whether costs change as output changes | TRUE - cost behavior studies the different ways that costs reacts to output changes |
| Fixed costs always stay the same in total as output changes regardless of the relevant range | FALSE |
| RF company manufactures furniture. if furnitature were the cost object, the nails used to make the furniture would be considered a variable cost | TRUE - the amount of nails used would vary according the amount of furniture manufactured. |
| In the long run all costs are fixed | FALSE |
| The cost of flexible resources is fixed | FALSE - flexible resources are supplied when needed, the costs of flexible resources increases as demand for the resources increases. thus, flexible resources are variable. committed resources are fixed |
| Committed resources may give rise to unused capacity | TRUE - when committed resources are purchased, the resource supplied is greater than the resource usage; this gives rise to unused capacity. flexible resources do not give rise to unused capacity. |
| The relevant range is a wide range of activity where total variable costs remain the same | FALSE - Total fixed costs remain the same within the relevant range of activity. |
| An estimate of the total fixed cost is the intercept parameter where Total cost = Fixed cost + (Variable | TRUE - |
| The high-low method calculates a better estimate of the cost formula than the method of least squares | FALSE - The method of least squares calculates a better cost formula because it considers all the |
| Manufacturing overhead is usually a: | mixed cost. -Manufacturing overhead is usually a mixed cost |
| Within the relevant range of activity, if the level of activity increases, variable cost per unit | remains the same - Variable cost per unit remains the same |
| Within the relevant range of activity, total fixed cost will: | remain constant. - Total fixed cost remains constant and total variable cost increases in proportion with the level of |
| An example of a variable cost is: | commissions paid to salesmen based on units sold - Commissions are variable costs because total commissions paid vary with sales |
| An example of a committed fixed cost is | property taxes on factory building - Advertising is a discretionary fixed cost. |
| Which is the best method for separating mixed costs into fixed and variable components? | method of least squares - Scatterplot method is subjective |
| The Starry Corporation developed a cost function for manufacturing overhead: Manufacturing overhead = $10,000 | $10,000 + ($2 x 14,000) = $38,000 |
| Blurry Company shipped 10,000 units for $36,000 in April and 12,000 units for $40,000 in May. The estimated cost | Variable costs = ($40,000 - $36,000)/(12,000 - 10,000) = $2 |
| The following cost function to estimate manufacturing overhead was estimated using the method of least squares: | The intercept parameter is $40. . The slope parameter is $2 |
| Which method would quickly detect a nonlinear relationship between activity cost and activity output? | The scatterplot method plots all the activity cost observations at various levels of activities. It will |
Created by:
buck56
Popular Accounting sets