1. The scatterplot method:

A. is preferable over the high-low method as managerial judgment can eliminate outliers

B. is less accurate than the high-low method

C. is more accurate than regression analysis

D. always ignores the high point and the low point

2. Which of the following is an example of a variable cost:

A. Direct Labor Cost

B. Electricity Expense

C. Sales Commission

D. A & C

3. A company sells two products, Alpha & Beta. The sales mix of Alpha to Beta is 3:2. The contribution margin per unit for Alpha is $12 and the contribution margin per unit for Beta is $19. The companys fixed costs are $100,000. Using the composite unit method, how many units of Alpha must be sold to break even?

A. 2,703 units

B. 1,352 units

C. 4,054 units

D. 8,334 units

4. Which type of cost does the following graph represent?

A. Fixed Cost per unit

B. Variable Cost per unit

C. Mixed Cost

D. Variable Cost

5. Which type of cost does the following graph represent?

A. Fixed Cost per unit

B. Variable Cost per unit

C. Mixed Cost

D. Variable Cost

6.Which type of cost does the following graph represent?

A. Fixed Cost per unit

B. Variable Cost per unit

C. Step Fixed Cost

D. Variable Cost

7.When attempting to determine a cost formula for mixed-costs, regression analysis can be used. When considering if the projected line is a good fit, the coefficient of determination or R² is evaluated. A coefficient of determination of 0.88 suggests that:

A)88% of the variation in the dependent variable is explained by the changes in the independent variable(s)

B)88% of the variation in the dependent variable is explained by the changes in factors other than the chosen independent variables

C)0.88% of the variation in the dependent variable is explained by the changes in the independent variable(s)

D)0.88% of the variation in the dependent variable is explained by the changes in factors other than the chosen independent variables

8. In an activity-based costing system, manufacturing overhead costs are divided into separate: A. Cost drivers. B. Activity cost pools. C. Activity bases. D. Indirect cost centers.

9.The cost of setups would be considered a:

A. Unit Level Cost

B. Product Level Cost

C. Batch Level Cost

D. Facility Level Cost