UNIT 3 QUIZ\t1. Question : Which of the following provides the most accurate cost\testimation?\tStudent Answer:\tRegression analysis with R-squared of 0.12.\tRegression analysis with F value of 1.2\tHigh-low method.\tRegression analysis with R squared of 0.89.\t\u00a0\t\u00a0\tQuestion 2. Question : Data collected on the cost objects and cost drivers for cost\testimation must be:\tStudent Answer:\tBrief and limited.\tExhaustive.\tConcrete.\tConsistent and accurate.\tVaried.\t\u00a0\t\u00a0\tQuestion 3. Question : The independent variable in regression analysis is:\tStudent Answer:\tThe cost to be estimated.\tThe cost driver used to estimate the value of the dependent\tvariable.\tHard to define because of its independence.\tUsually expressed as a range of values.\tAlways a volume-based cost driver.\t\u00a0\tUNIT 3 QUIZ\tQuestion 4. Question : A range around the regression line within which the management\taccountant can rely that the actual value of the predicted cost will\tfall is referred to as:\tStudent Answer:\tA relevant range.\tA goodness of fit.\tA confidence interval.\tA t-value\tA p-value.\t\u00a0\t\u00a0\tQuestion 5. Question : The name for a variety of methods used to examine how an\tamount will change if factors involved in predicting that amount\tchange is:\tStudent Answer:\tSensitivity analysis.\tContribution margin analysis.\tFactor analysis.\tCost analysis.\tCost-volume-profit analysis.\t\u00a0\t\u00a0\tQuestion 6. Question : CVP analysis for revenue and cost planning has the primary\tobjective of:\tStudent Answer:\tMaximizing revenue.\tMinimizing costs.\tBoth revenue maximization and cost minimization.\tAchieving a desired level of sales and profits.\tConsistently producing sales above the breakeven level.\t\u00a0\t\u00a0\tQuestion 7. Question : The CVP profit-planning model assumes that over the relevant\trange of activity:\tStudent Answer:\tOnly revenues are linear.\tOnly revenues and fixed costs are linear.\tOnly revenues and variable costs are linear.\tVariable cost per unit decreases because of increases in\tproductivity.\tBoth revenues and total costs are linear.\t\u00a0\t\u00a0\tQuestion 8. Question : The degree of operating leverage (DOL), at any sales volume, is\tequal to:\tStudent Answer:\t(Operating profit – fixed expenses) \u00f7 sales.\t(Sales – variable expenses) \u00f7 operating profit.\tOperating profit \u00f7 (fixed expenses – variable expenses).\tSales \u00f7 (fixed expenses – operating profit).\tFixed costs \u00f7 Total contribution margin.\tQuestion 9. Question : Sales forecasts are the first step in the budgeting process of a\tmerchandising firm because:\tStudent Answer:\tThe revenue data are easiest to generate.\tSales information is precise in amount.\tSales personnel have the quickest access to data.\tSales forecasts are the most objective of all budgeted\tactivities.\tAlmost all activities of a firm emanate from (i.e., are linked\tto) estimated sales demand.\t\u00a0\t\u00a0\tUNIT 3 QUIZ\tQuestion 10. Question : All of the following represent alternative approaches to the\ttraditional budget-preparation process except which one?\tStudent Answer:\tMaster budgeting.\tKaizen budgeting.\tContinuous-improvement budgeting.\tActivity-based budgeting (ABB)\tTime-driven activity based budgeting (TDABB)\t\u00a0\t\u00a0\tQuestion 11. Question : The type of compensation plan that focuses on the difference\tbetween actual performance (sales, operating income, etc.) and\tbudgeted performance is refers to:\tStudent Answer:\tThe use of flexible budgets for performance evaluation.\tThe use of the master budget for performance evaluation.\tThe use of “rolling financial forecasts.”\tThe use of a fixed-performance contract.\tThe use of a Kaizen forecast.\t\u00a0\t\u00a0\tQuestion 12. Question : The act of encouraging non-value-adding actions on the part of\tmanagement in order to improve indicated performance is referred\tto as:\tStudent Answer:\tGoal congruency.\tGaming the performance indicator.\tThe use of fixed-performance contract.\tLinear optimization analysis.\tThe use of a relative-performance contract.\t\u00a0\t\u00a0\tUNIT 3 QUIZ\tQuestion 13. Question : Stylish Sitting is a retailer of office chairs located in San\tFrancisco, California. Due to increased market competition, the\tCFO of Stylish Sitting has grown worried about the firm’s\tupcoming income stream. The CFO asked you to use the company\tfinancial information provided below.\tSales Price $75.00\tPer Unit Variable Costs:\tInvoice Cost 41.70\tSales Commission 18.30\tTotal Per Unit Variable Cost $60.00\tFixed Costs:\tAdvertising $ 56,000\tRent 78,000\tSalaries 226,000\tTotal Annual Fixed Costs $360,000\tIf 40,000 office chairs were sold, Stylish Sitting’s operating\tincome would be:\tStudent Answer: $240,000.\t$280,000.\t$210,000.\t$340,000.\t$120,000.\t\u00a0\t\u00a0\tUNIT 3 QUIZ\tQuestion 14. Question : Thompson Refrigerators Inc. needs to prepare pro forma financial\tstatements for the next fiscal year. To do so, the company must\tforecast its total overhead cost. The actual machine hours and total\toverhead cost are presented below for the past six months.\tMONTH TOTAL O\/H MACHINE HOURS\tJan $ 8,258 2,134\tFeb 8,006 2,045\tMar 8,387 2,276\tApr 8,832 2,743\tMay 8,921 2,834\tJune 7,841 2,034\tUsing the high-low method, unit variable overhead cost is\tcalculated to be:\tStudent Answer: $1.35.\t$1.15\t$1.40.\t$1.65.\t$1.25.\t\u00a0\t\u00a0\tQuestion 15. Question : CalcuCo hired Effner & Associates to design a new computeraided\tmanufacturing facility. The new facility was designed to\tproduce 300 computers per month. The variable costs for each\tcomputer are $660 and the fixed costs total $74,700 per month.\tThe average cost per unit, if the facility normally expects to\toperate at eighty-five percent of capacity, is calculated to be\t(round to nearest cent):\tStudent Answer: $952.94.\t$909.00.\t$936.67.\t$971.25.<\/p>\n","protected":false},"excerpt":{"rendered":"
UNIT 3 QUIZ 1. Question : Which of the following provides the most accurate cost estimation? Student Answer: Regression analysis with R-squared of 0.12. Regression analysis with F value of 1.2 High-low method. Regression analysis with R squared of 0.89. Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-217248","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/217248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=217248"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/217248\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=217248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=217248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=217248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}