Reference no: EM13949671
1. Why is a scattergraph a good first step in decomposing mixed costs into their fixed and variable components?
2. Describe how the scatterplot method breaks out the fixed and variable costs from a mixed cost. Now describe how the high-low method works. How do the two methods differ?
3. What are the advantages of the scatterplot method over the high-low method? The high-low method over the scatterplot method?
4. Describe the method of least squares. Why is this method better than either the high-low method or the scatterplot method?
5. What is meant by the "best-fitting line"?
6. Is the best-fitting line necessarily a good-fitting line? Explain.
7. Describe what is meant by "goodness of fit." Explain the meaning of the coefficient of determination.
8. What is the difference between the coefficient of determination and the coefficient of correlation? Which of the two measures of goodness of fit do you prefer? Why?
9. When is multiple regression required to explain cost behavior?
10. Some firms assign mixed costs to either the fixed or variable cost categories without using any formal methodology to separate them. Explain how this practice can be defended.
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Kilogram for mass and the meter for length
: (a) 1 N equals 1 kg ? m/s2 but 1 lbf does not equal 1 lb ? ft/s2. (b) Specific volume, the volume per unit of mass, is an intensive property while volume and mass are extensive properties. (c) The kilogram for mass and the meter for length are exampl..
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Difference between resource spending and resource usage
: Explain the difference between resource spending and resource usage. What is the relationship between flexible resources and cost behavior?
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Change in length of the thermometer liquid
: 1. For liquid-in-glass thermometers, the thermometric property is the change in length of the thermometer liquid with tem- perature. However, other effects are present that can affect the temperature reading of such thermometers. What are some of ..
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Revenue at breakeven if fixed costs increase
: Use the following income statement to answer question a. through f. Round up on to 1/100th. Use 2 decimal places to solve all problems.
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What is meant by the best-fitting line
: What is meant by the "best-fitting line"? Is the best-fitting line necessarily a good-fitting line? Explain. Describe what is meant by "goodness of fit." Explain the meaning of the coefficient of determination.
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What is the null hypothesis
: To investigate three approaches to problem solving, 30 six-graders were assigned to three treatment conditions T1, T2, T3 . Where T1 = control, and T2 and T3 are two experimental conditions- State model and model assumptions and What is the null h..
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How the cost of supervision behaves in total
: Prepare a table that shows how the cost of supervision behaves in total and on a per-unit basis as production increases from 0 to 250,000 units per year, using 50,000-unit increments.
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Prepare a table that shows the total cost of fuel
: Prepare a table that shows the total cost of fuel and unit cost for miles traveled ranging from 0 to 10,000 miles, using increments of 2,000 miles.
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Determine the final pressure
: Water vapor is cooled in a closed, rigid tank from 520°C and 100 bar to a final temperature of 270°C. Determine the final pressure, in bar, and sketch the process onT-y and p-y diagrams.
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