Question
When using the incremental unit-time learning model a. the cumulative time per unit declines by a constant percentage when production doubles b. the time needed
When using the incremental unit-time learning model
a. | the cumulative time per unit declines by a constant percentage when production doubles | |
b. | the time needed to produce the last unit declines by a constant percentage when production doubles | |
c. | the time to produce one additional unit decreases by a constant percentage | |
d. | costs increase incrementally in an undetermined pattern |
When the high-low method is used to estimate a cost function, the variable cost per unit is found by
a. | performing regression analysis on the associated cost and cost driver database | |
b. | subtracting the fixed cost per unit from the total cost per unit based on either the highest or lowest observation of the cost driver | |
c. | dividing the difference between the highest and lowest observations of the cost driver by the difference between costs associated with the highest and lowest observations of the cost driver | |
d. | dividing the difference between costs associated with the highest and lowest observations of the cost driver by the difference between the highest and lowest observations of the cost driver |
The five-step decision process
a. | includes planning and control activities | |
b. | is performed exclusively by management accountants | |
c. | is not often used, as the costs exceed the benefits | |
d. | must be performed following GAAP guidelines |
Refer to Try It 11-2 in your book on page 440. Looking at this using the Opportunity Cost Approach we have determined that the opportunity cost of accepting Victoria's offer is $26,000. Which element is not used in determining this $26,000
a. | Variable marketing costs | |
b. | Fixed marketing costs | |
c. | Revenues | |
d. | Variable costs of landscaping |
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