1. The least-squares regression method is:
A graphical method to identify cost behavior.
An algebraic method to identify cost behavior.
A statistical method to identify cost behavior.
The only identify cost estimation method allowed by GAAP.
A cost estimation method that only uses the two extreme values.
1. A firm sells two products, A and B. For every unit of A the firm sells, two units of B are sold. The firm's total fixed costs are $1,612,000. Selling prices and cost information for both products follow: What is the firm's break-even point in units of A and B?
31,000 of A and 31,000 of B.
31,000 of A and 62,000 of B.
10,333 of A and 20,667 of B.
36,167 of A and 72,333 of B.
62,000 of A and 31,000 of B.
1. At Flint Company's break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The unit sales price is:
1. The sales level at which a company neither earns a profit nor incurs a loss is the:
Margin of safety.
Step-wise variable level.
1. A company wishes to earn a pretax income equal to 35% of total fixed costs. Its product sells for $50.75 per unit. Total fixed costs equal $156,800 and variable costs per unit are $32.50. How many units must this company sell to meet its goal? (Round answer to complete units.)
1. A cost that changes in total proportionately to changes in volume of activity is a(n):
1. Tanner Inc. has incurred the following overhead costs over a 6 week period: Calculate the approximate fixed cost component of Tanner's overhead costs using the high-low method.
1. Flexibility of practice when applied to managerial accounting means that:
The information must be presented in electronic format so that it is easily changed.
Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for.
The managerial accountants need to be on call twenty-four hours a day.
The design of a company's managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company.
Managers must be flexible with information provided in varying forms and using inconsistent measures.
1. Which of the following costs would not be classified as factory overhead?
Property taxes on maintenance machinery.
Expired insurance on factory equipment.
Wages of the factory janitor.
Metal doorknobs used on wood cabinets produced.
Small tools used in production.
1. Classifying costs by behavior involves:
Identifying fixed cost and variable cost.
Identifying cost of goods sold and operating costs.
Identifying all costs.
Identifying costs in a physical manner.
Identifying both quantitative and qualitative cost factors.
1. Which of the following is not a characteristic of all fraud?
It is done to provide direct or indirect benefit to the employee.
It violates the employee's duties to his employer.
It costs the employer money.
It is secret.
Can be intentional or unintentional.
1. The following information is available for Talking Toys, Inc. for the current year: The total cost of goods manufactured for the year was:
1. Total manufacturing costs incurred during the year do not include:
Direct materials used.
Factory supplies used.
Goods in process inventory, beginning balance.
Depreciation of machinery.
1. The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:
Total quality management.
Lean business model.
1. Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products called are: