Exam (elaborations)
Ch 3 MC-Cost Accounting (1).
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- 9.4.1 Transaction Processing Systems
Ch 3 MC-Cost Accounting (1).
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Ch 3 MC-Cost AccountingIf production volume increases from 16,000 to 20,000 units, - ANS-a. (CORRECT)
total variable costs will increase by 25 percent.
b.
total costs will increase by 20 percent.
c.
total costs will increase by 25 percent.
d.
mixed and variable costs will increase by 25 percent.
The high-low method may give unsatisfactory results if - ANS-a. (CORRECT)
the points are unrepresentative.
b.
volume of activity is light.
c.
the data points all fall on a line.
d.
volume of activity is heavy.
The scatterplot method of cost estimation - ANS-a.
is influenced by extreme observations.
b.
uses the least-squares method.
c. (CORRECT)
requires the use of judgment.
d.
is superior to other methods in its ability to distinguish between discretionary and committed
fixed costs.
The direct material cost is $20,000 when 2,000 units are produced. What is the direct material
cost for 2,500 units produced? - ANS-a.
$15,000
b.
$5,000
c.
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