Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with a management accounting question. Thanks a lot Question 3 - Cost Behaviour Susan Supplies Ltd is a wholesaler for a large

Please help me with a management accounting question.

Thanks a lot

image text in transcribed Question 3 - Cost Behaviour Susan Supplies Ltd is a wholesaler for a large variety of plumbing supplies. The company's accountant, Moriss, has recently completed a cost study of the firm's Shipping Department in which he used the kilograms of supplies loaded or unloaded at the company's loading dock to quantify the department's activity. Susan supplies compiled the following data. Required: A. Draw a scatter diagram of the cost data for the Shipping Department. B. Estimate the Shipping Department's cost behaviour using the high-low method. Use an equation to express the results of this estimation method. C. Using the equations estimated in Part 2 predict the Shipping Department's costs for a month when loads totalling 5500 kilograms are moved. D. Prepare least squares regression analysis to estimate the variable and fixed components for the Shipping Department costs. E. Based on your spreadsheet write the least squares regression equation for the Department's costs. F. Using the equation from Part E, predict the firm's Shipping Department's costs for a month when loads totalling 5500 kilograms are moved. G. Why do these cost predictions estimated using the high-low and regression methods differ? Which method do you recommend? Explain your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: George H Bodnar, William S Hopwood

10th Edition

013609712X, 978-0136097129

More Books

Students also viewed these Accounting questions

Question

Explain the steps involved in training programmes.

Answered: 1 week ago

Question

What are the need and importance of training ?

Answered: 1 week ago

Question

7. One or other combination of 16.

Answered: 1 week ago

Question

5. It is the needs of the individual that are important.

Answered: 1 week ago