Question
38. The least-squares regression method can be used to approximate a cost function. A disadvantage of this method is ________. A) it does not use
38. The least-squares regression method can be used to approximate a cost function. A disadvantage of this method is ________.
A) it does not use all the available data points
B) it is more subjective than engineering analysis
C) it requires a lot of prior cost data
D) it requires subjective placement of the line
39. Which of the following types of costs cannot be specifically and exclusively identified with a cost object in an economically feasible manner?
A) indirect costs
B) fixed costs
C) direct costs
D) variable costs
40. The monthly indirect production cost is Depreciation Expense on Assembly Equipment of $150,000. The cost allocation base is number of machine hours. The expected level of production in a month is 10,000 machine hours. What is the amount of indirect production cost per unit assigned to Product 1 and Product 2. Product 1 requires 12 machine hours per unit. Product 2 requires 25 machine hours per unit.
Product 1 Product 2
A) $180 $275
B) $180 $375
C) $150 $250
D) none of the above
41. Which of these costs is a direct cost for a manufactured wood chair?
A) Rent Expense for factory building
B) Depreciation Expense on factory equipment
C) Wood used to manufacture chair
D) Salary Expense of factory supervisor
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