Question :
61)
A function graphed as a curve, that shows how full : 1196059
61)
A function graphed as a curve, that shows how full product costs per unit decline as output increases, is called 61)
______ A)
time-series curve. B)
cross-sectional data curve. C)
goodness of fit curve. D)
conference data curve. E)
experience curve.
62)
What is the time needed to produce the last unit when production doubles from 100 units to the 200 unit level, given that the incremental unit time learning model has a 60% learning curve, and the corresponding time at the 100 unit level of production is 4.0 minutes? 62)
______ A)
6.4 minutes B)
4.0 minutes C)
2.4 minutes D)
8.0 minutes E)
1.6 minutes
63)
A nonlinear cost function 63)
______ A)
never describes the behaviour of costs in relation to the cost driver. B)
means the relevant range cannot be determined for that cost. C)
does not effectively describe the behaviour of costs all of the time. D)
always describes the behaviour of costs in relation to the cost drivers. E)
has two constants and a single slope.
64)
When an average unit of time declines by a constant percentage each time that the cumulative quantity of units produced is doubled, it is known as 64)
______ A)
last unit time. B)
relative unit time. C)
incremental unit time. D)
cumulative average time. E)
cumulative unit time.
65)
Typical problems encountered when estimating a cost function include all of the following EXCEPT 65)
______ A)
the relationship between the cost and the cost driver is not stationary. B)
homogeneous relationships between individual cost items in the dependent variable pool and cost drivers may not be present. C)
the time period for collecting data is not correlated to the time period under study. D)
time periods differ for measuring items included in the dependent variable and the cost driver(s). E)
fixed costs being allocated as if they are variable costs.
66)
Multicollinearity exists when which of the following conditions is present? 66)
______ A)
the underlying value of the coefficient can only be explained in relation to dependent variables B)
two or more independent variables are highly correlated with each other C)
there are two or more statistically significant observations of at least two independent variables D)
at least two variables change due to changes in the cost driver E)
there are at least two cost pools, (usually separated for fixed and variable costs)
67)
In regression analysis, the term independence of residuals means 67)
______ A)
the residual term for any one observation is not related to the residual term of any other observation. B)
the data exhibit serial correlation. C)
there is a systematic pattern of positive residuals. D)
there is a systematic pattern of either only positive or only negative residuals. E)
the data exhibit autocorrelation.
68)
Larson’s Stables uses two different independent variables in two different equations to evaluate the cost activities of training horses, trainer’s hours, and number of horses. The most recent year’s results of the two regressions are as follows:
Trainer’s hours:
Variable Coefficient Standard Error t-Value
Constant913.32198.124.61
Independent Variable20.902.947.11
= 0.56
Number of horses:
Variable Coefficient Standard Error t-Value
Constant4,764.501,073.094.44
Independent Variable864.98247.143.50
= 0.63
What is the estimated cost for the coming year if 16,000 trainer hours are incurred and the stable has 400 horses to be trained based on the best cost driver? 68)
______ A)
$13,844,444.50 B)
$335,313.32 C)
$33,555.50 D)
$350,756.50 E)
$99,929.09
69)
C. M. Chain was to manufacture 1,000 chain saws next month. Its accountant has provided the following analysis of the total manufacturing costs.
Variable Coefficient Standard Error t-Value
Constant200143.881.39
Independent Variable400183.492.18
= 0.71
What is the estimated cost of producing the 1,000 chain saws? 69)
______ A)
$284,142 B)
$200,400 C)
$18,000 D)
$9,000 E)
$400,200
70)
Goodness-of-fit measures how well the predicted values in a cost estimating equation 70)
______ A)
match the actual cost observations. B)
rely on the independent variable. C)
fit the coefficient of determination. D)
match the cost driver. E)
rely on the dependent variable
