Reference no: EM132622948

Problem 1: Which of the following is not an example of a committed fixed cost?

A. Property taxes.
B. Depreciation on buildings.
C. Salaries of management personnel.
D. Outlays for advertising programs.
E. Equipment rental costs.

Problem 2: Which of the following techniques is not used to analyze cost behavior?

A. Least-squares regression.
B. High-low method.
C. Visual-fit method.
D. Linear programming.
E. Multiple regression.

Problem 3: The high-low method and least-squares regression are used by accountants to:

A. evaluate divisional managers for purposes of raises and promotions.
B. choose among alternative courses of action.
C. maximize output.
D. estimate costs.
E. control operations.

Problem 4: Which of the following methods of cost estimation relies on only two data points?

A. Least-squares regression.
B. The high-low method.
C. The visual-fit method.
D. Account analysis.
E. Multiple regression.

Problem 5: Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, total maintenance costs averaged $33.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.40.

On the basis of this information, the variable cost per machine hour was:

A. $8.40.
B. $22.00.
C. $25.00.
D. $30.40.
E. $33.40.