A contractual agreement that specifies a fee per mile driven, such as with a rental of a truck, is not considered a cause-and-effect relationship between an activity and a cost. O O True False A finance manager has to select one of the four different suppliers of raw materials. The total cost functions under the four options are given below. Assume the quality of the raw material to be the same, which of the following is preferred by the finance manager? O A. y = 400 +4.99X O B. y = 400 + 5.41X O C. y = 400 +4.48X OD. y = 400 + 4.74% M & G TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations. Sales (1,500 televisions) Cost of goods sold Store manager's salary per year Operating costs per year Advertising and promotion per year Commissions (2.8% of sales) $1,500,000 555,000 120,000 210,000 18,000 42,000 What are the estimated total costs if the company expects to sell 3,800 units next year? O A. $1,860,400 O B. $3,339,000 OC. $2,991,000 OD. $454,400 Which of the following functions represents the least total cost assuming the number of units is equal in each case? O A. y = 50 + 7X B. y = 50 + 3x OC. y = 220 + 3x OD. y = 220 + 7X Which of the following is not a nonlinear cost function? O A. total fixed cost of $25,000 OB. increase of $20,000 revenues with increase in sales in units O c. a step cost function OD. variable cost of $5 per unit Which of the following is an example of time-series data: O A. loan processing times in each of 26 similar branch offices over the last 12 months OB. indirect labor costs and machine-hours in a manufacturer's assembly department each month for the last 12 months O C. store sales for each U.S. based Wal-Mart for each the last 10 years. OD. direct labor hours in the Boston, Massachusetts and the New York City facility for each of the last 12 months A contractual agreement that specifies a fee per mile driven, such as with a rental of a truck, is not considered a cause-and-effect relationship between an activity and a cost. O O True False A finance manager has to select one of the four different suppliers of raw materials. The total cost functions under the four options are given below. Assume the quality of the raw material to be the same, which of the following is preferred by the finance manager? O A. y = 400 +4.99X O B. y = 400 + 5.41X O C. y = 400 +4.48X OD. y = 400 + 4.74% M & G TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations. Sales (1,500 televisions) Cost of goods sold Store manager's salary per year Operating costs per year Advertising and promotion per year Commissions (2.8% of sales) $1,500,000 555,000 120,000 210,000 18,000 42,000 What are the estimated total costs if the company expects to sell 3,800 units next year? O A. $1,860,400 O B. $3,339,000 OC. $2,991,000 OD. $454,400 Which of the following functions represents the least total cost assuming the number of units is equal in each case? O A. y = 50 + 7X B. y = 50 + 3x OC. y = 220 + 3x OD. y = 220 + 7X Which of the following is not a nonlinear cost function? O A. total fixed cost of $25,000 OB. increase of $20,000 revenues with increase in sales in units O c. a step cost function OD. variable cost of $5 per unit Which of the following is an example of time-series data: O A. loan processing times in each of 26 similar branch offices over the last 12 months OB. indirect labor costs and machine-hours in a manufacturer's assembly department each month for the last 12 months O C. store sales for each U.S. based Wal-Mart for each the last 10 years. OD. direct labor hours in the Boston, Massachusetts and the New York City facility for each of the last 12 months
