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The method of least squares Select one: a. analyzes a cost relationship by plotting the data points on a graph. is the least accurate method. C. can easily be calculated by hand. uses the results of regression analysis to construct a cost formula.
Figure 3-2 Lassiter Toys, Inc. Cost of Materials $20,000 00,000 200,000 300,000 40,000 60,000 Refer to Figure 3-2. The cost behavior of the materials cost is Select one: a. variable b. discretionary C. committed d. fixed
Managerial judgment Select one: a. is critically important in determining cost behavior. none of these are correct C. is the most accurate way to determine cost behavior. d. is the least used method in practice.
6 Figure 3-3. Okafor Company manufactures skis. The management accountant wants to calculate the fixed variable costs associated with the leasing of machinery. Data for the past four months were collected. of Machine hours 550 Month April May June July S21,000 16,500 19,000 22,230 420 510 570 Refer to Figure 3-3. What would Okafor Companys cost formula be to estimate the cost of leasing within the relevant range? Select one: a. none of these are correct b. total lease cost = $516 + ($38.18 × machine hours) total lease cost = $420 + ($37.25 × machine hours)
Margolo Company makes cross-country skis. The company controller wants to calculate the fixed and variable costs associated with janitorial services incurred by the factory. Data for the past 6 months were Labor boues 10,120 9,500 10.500 11,100 8,660 10,650 9,200 8,8oo February March April May June 9.350 9,620 8,400 9.400 Select the correct set of high and low months Select one high: June, low: April high: January, low: February C. high: June, low: May d. high: April, low: May
Per-unit fixed costs Select one: a. increase as output increases b. can be misleading and lead to poor decisions. с. decrease as output decreases d. stay the same as output changes.
Figure 3-11 The following four months of data were collected on utility cost and the number of labor hours in a factory Utility Labor hours 3,975 5,430 4,400 3,200 cost $22,100 24,600 Month January February March April 23,500 20,140 Refer to Figure 3-11. Select the correct set of high and low months. Select one: high: February, low: March b. high: January, low: April C. high: February, low: April d. high: January, low: March
Figure 3-13. The following 6 months of data were collected on electricity cost and the number of machine hours in a factory Electricity Machine Month cost S25,160 26,170 27,250 26,680 27,950 27,500 hours 4,500 4,810 5,120 5,010 5,430 5.190 June July August September October November Refer to Figure 3-13. An independent variable value used in calculating the cost line using the high-l method is: Select one: a. $27,950 4,000 C. 5,430 d. $25,160
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Answer #1

Solution 1:

The method of least squares uses the result of regression analysis to construct a cost formula.

Hence last option is correct.

Solution 2:

The cost behavior of material cost is "Variable" as its changes in same proportion of changes in output.

Hence first option is correct.

Solution 3:

Managerial judgement is critically important in determining the cost behavior.

Hence first option is correct.

Note: As multiple questions are posted, i have answered more than required questions as per HomeworkLib policy, kindly post separate question for answer of remaining questions.

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