Question :
51)
At the high point of the relevant range, labour hours : 1196058
51)
At the high point of the relevant range, labour hours at Bradco Restoration were $10,000 and wages were $22,500. At the low point of the relevant range, labour hours were 7,500 and wages were $17,500. What is the high-low estimate of the labour costs at Bradco Restoration when 8,000 hours are used? 51)
______ A)
$18,500 B)
$17,125 C)
$17,750 D)
$17,250 E)
$21,500
52)
When using the high-low method, the denominator in the equation that determines the slope is the 52)
______ A)
the intercept. B)
independent variable. C)
dependent variable. D)
difference between the high and low observations of the dependent variables. E)
difference between the high and low observations of the cost driver.
53)
The use of an independent variable to estimate the dependent variable is known as 53)
______ A)
least squares regression B)
multiple regression. C)
singular regression. D)
simple regression. E)
high-low method.
54)
Simple regression differs from multiple regression in that 54)
______ A)
the lease squares technique cannot be used for simple regression whereas it can be used for multiple regression B)
simple regression uses only one independent variable and multiple regression uses more than one independent variable. C)
simple regression uses only one dependent variable and multiple regression uses more than one dependent variable. D)
multiple regression uses all available data to estimate the cost function whereas simple regression only uses simple data. E)
simple regression is limited to the use of only the dependent variables and multiple regression can use both dependent and independent variables.
55)
Simple regression analysis provides the means to evaluate a line of regression which is fitted to a plot of data and represents 55)
______ A)
the variability of expense with dollars of operation. B)
the variability of expense with dollars of production. C)
the way costs change in respect to the independent variable. D)
the way costs change in respect to the dependent variable. E)
the estimated variability in costs.
56)
Regression analysis differs from high-low analysis in that regression analysis 56)
______ A)
ignores both the high and low observations of the dependent variable, and non-representative data. B)
ignores non-representative data. C)
measures the average amount of change in the dependent variable. D)
measures the total amount of change in the dependent variable. E)
ignores the high and low observations of the dependent variable.
57)
The slope of the line of regression is 57)
______ A)
the rate at which the dependent variable varies. B)
the level of total fixed costs. C)
the rate at which the independent variable varies. D)
the level of total variable costs. E)
equal to the intercept.
58)
What is the predicted indirect manufacturing labour costs if 160 machine-hours are budgeted and 170 are actually worked, assuming the estimated cost function is y = $81.04 + 5.32x? 58)
______ A)
$851.20 B)
$985.44 C)
$81.04 D)
$904.40 E)
$932.24
59)
What criteria are available in determining which of two alternate cost function estimates is better for a particular management decision? 59)
______ A)
the significance of the difference between the costs associated with the highest and lowest observations of the cost driver B)
economic plausibility C)
the significance of the difference between the unit values for the highest and lowest observations of the cost driver D)
the slope of the regression line E)
the slope of the regression line and economic plausibility
60)
Which of the following is/are one of the criteria used when a manager evaluates an estimated cost function for decision making purposes? 60)
______ A)
irrelevant high-low outliers B)
goodness of fit C)
economic plausibility and goodness of fit D)
economic plausibility E)
specifications analysis