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##### GB519: Unit 3 Quiz

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Question;1. Question;The R-squared in a;satisfactory regression should be;less than.3;greater than.3;less than.7;greater than.7;Question 2. Question;Which of the following is not;one of the main issues regarding data collection which can significantly affect;precision and reliability when using regression or any other cost estimation;method?;Data accuracy.;Time period choice.;Nonlinearity.;Relevant range.;Question 3. Question;A range around the regression;line within which the management accountant can rely that the actual value of;the predicted cost will fall is referred to as;A relevant range.;A goodness of fit.;A confidence interval.;A t-value;A p-value.;Question 4. Question;Which of the following is;required for multiple regression?;The use of dummy variables.;The use of more than one cost driver.;The use of more than one dependent variable.;The use of a trend variable.;The use of multiple sets of data.;Question 5. Question;The CVP profit-planning model;assumes that over the relevant range of activity;Only revenues are linear.;Only revenues and fixed costs are linear.;Only revenues and variable costs are linear.;Variable cost per unit decreases because of;increases in productivity.;Both revenues and total costs are linear.;Question 6. Question;The breakeven point is;The sales volume at which revenues equal;total cost plus an operating profit of zero.;The sales volume at which revenues equal;variable cost and profit is zero.;The sales volume at which revenues equal;fixed cost and profit is zero.;The point at which revenues meet the budget;target.;The sales volume at which the total;contribution margin exceeds total variable costs.;Question 7. Question;Cost-volume-profit (CVP);relationships that are curvilinear may be analyzed linearly by considering;only;Fixed and semi-variable costs.;Relevant fixed costs.;Relevant variable costs.;A relevant range of volume.;The multi-product/multi-service context.;Question 8. Question;The contribution income;statement would require a firm to;Separate costs into fixed and variable;categories.;Separate revenue into different categories.;Round off amounts to the nearest dollar.;Ignore some estimated fixed expenses, such as;depreciation, that don't involve a cash outlay.;Restructure its accounting system to;accommodate activity-based costing;Question 9. Question;Sales forecasting by its;nature is;Precise.;Deterministic in nature.;Objective.;Somewhat subjective.;Mechanical.;Question 10. Question;Budgetary slack;occurs when;Employees refuse to adhere to budgeted plans;and operations.;The budget is so difficult to meet that;employees slack-off from work.;An authoritative, or imposed, budgeting;process is used.;In order to "meet" budget;objectives, employees ask for resources in excess of what they need.;Employees ask for fewer resources than they;need, in order to continuously improve.;Question 11. Question;A master budget is typically;prepared for;A period of one year.;Top management only.;Strategic planning purposes only.;Strategic business units only.;Operating activities only.;Question 12. Question;Which of the following factors;is least likely to be considered in preparing a sales budget?;Plant capacity.;General economic and industry conditions.;Past sales volume.;The cash budget.;Proposed selling expenses.;Question 13. Question;Stylish Sitting is a retailer;of office chairs located in San Francisco, California. Due to increased market;competition, the CFO of Stylish Sitting has grown worried about the firm's;upcoming income stream. The CFO asked you to use the company financial;information provided below.;Sales Price \$75.00;Per Unit Variable Costs;Invoice;Cost 41.70;Sales;Commission 18.30;Total Per Unit Variable Cost \$60.00;Fixed Costs;Advertising \$ 56,000;Rent;78,000;Salaries 226,000;Total Annual Fixed Costs \$360,000;If 40,000 office chairs were sold, Stylish Sitting's;operating income would be;\$240,000.;\$280,000.;\$210,000.;\$340,000.;\$120,000.;Question 14. Question;Thompson Refrigerators Inc.;needs to prepare pro forma financial statements for the next fiscal year. To do;so, the company must forecast its total overhead cost. The actual machine hours;and total overhead cost are presented below for the past six months.;MONTH;TOTAL O/H MACHINE;HOURS;Jan \$ 8,258 2,134;Feb 8,006 2,045;Mar 8,387 2,276;Apr 8,832 2,743;May 8,921 2,834;June 7,841 2,034;Using the high-low method, unit variable overhead cost is;calculated to be;\$1.35.;\$1.15;\$1.40.;\$1.65.;\$1.25.;Question 15. Question;CalcuCo hired Effner;Associates to design a new computer-aided manufacturing facility. The new;facility was designed to produce 300 computers per month. The variable costs;for each computer are \$660 and the fixed costs total \$74,700 per month. The;average cost per unit, if the facility normally expects to operate at;eighty-five percent of capacity, is calculated to be (round to nearest cent);\$952.94.;\$909.00.;\$936.67.;\$971.25.

Paper#44594 | Written in 18-Jul-2015

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