成本管理会计练习chap03

Chapter 3

1. Cost behavior is the general term for describing whether costs change as output change s.

2. Fixed costs always stay the same in total as output change s regardless of the relevant range.

3. RF Company manufactures furniture. If furniture were the cost object, the nails used to make the furniture would be considered a variable cost.

4. In the long run all costs are fixed.

5. The cost of flexible resource s is fixed.

6. Committed resource s may give rise to unused capacity.

7. The salary of salesmen that include s a minimum base salary plus a commission ba sed on sales revenue is an example of a variable cost.

8. The relative range is a wide range of activity where total variable costs remain the same.

9. An estimate of the total fixed cost is the intercept parameter where Total cost = Fixed cost + (Variable rate x Output).

10. The high-low method calculates a better estimate of the cost formula than the method of least square s.

11. Manufacturing overhead is usually a: a. variable cost b. fixed cost c. mixed cost d. step cost

12. Within the relevant range of activity, if the level of activity increases, variable cost per unit:

a. increases

b. decreases

c. remains the same

d. equals fixed costs per unit

13. Within the relevant range of activity, total fixed cost will: a. increase in proportion with the level of activity

b. vary inversely with the level of activity

c. remain constant

d. none of the above

14. An example of a variable cost is: a. commissions paid to salesmen based on units sold

b. depreciation on factory building

c. salary of factory foreman

d. insurance on factory warehouse

15. An example of a committed fixed cost is: a. advertising b. a training program for new man agers

c. direct materials

d. property taxes on factory building

16. Which is the be st method for separating mixed costs into fixed and variable components?

a. scatterplot method

b. high-low method

c. method of least squares

d. all methods are the same

17. The Starry Corporation developed a cost function for manufacturing overhead: Manufacturing overhead = $10,000 + ($2 x Output). If the company plans to manufacture 14,000 units next month, estimated manufacturing costs next month would be: a. $38,000 b. $10,000 c. $24,000 d. $10,002

18. Blurry Company shipped 10,000 units for $36,000 in April and 12,000 units for $40,000 in May. The estimated cost function for shipping costs would be:

a. Shipping costs = $36,000 + ($2 x Units)

b. Shipping costs = $16,000 + ($2 x Units)

c. Shipping costs = $20,000 + ($1.60 x Units)

d. Cannot be determined with the information given

19. The following cost function to estimate manufacturing overhead was estimated using the method of

least squares: Y = $40 + $2x, wherein x is the number of units of output. What is true about the cost function?

a. the slope parameter is $40

b. the intercept parameter is $40

c. the variable cost per unit of activity is $40

d. the total fixed cost is $42

20. Which method would quickly detect a nonlinear relationship between activity cost and activity output?

a. scatterplot method

b. high-low method

c. method of least squares

d. multiple regression