Reference no: EM132622942
Problem 1: In which approach to cost estimation is least squares used?
A. Engineering method
B. High-low method
C. Regression analysis
D. Managerial judgement
Problem 2: Which of the following statements is correct?
A. Activity-based costing uses non-volume-based cost drivers only.
B. Activity-based costing uses volume-based cost drivers.
C. Activity-based costing recognises that both volume-based and non-volume-based cost drivers may be appropriate. D. None of the answers is correct.
Problem 3: For a fixed cost, as volume increases:
A. the cost behaviour depends on the type of fixed cost involved.
B. total fixed costs remain constant and fixed costs per unit increase.
C. both total fixed costs and fixed costs per unit remain constant.
D. total fixed costs remain constant and fixed costs per unit decrease.
Problem 4: Which of the following increases as volume of activity decreases?
A. Fixed cost per unit
B. Variable cost per unit
C. Total fixed cost
D. Total variable cost
Problem 5: Rachelle Hamilton has a fast-food franchise and must pay a franchise fee of $45,000 plus 4% of gross sales. In terms of cost behavior, the fee is a:
A. variable cost.
B. fixed cost.
C. step-fixed cost.
D. semivariable cost.
E. curvilinear cost.
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