Which of the following is true of variable costing?

1. It expenses administrative costs as costs of goods sold
2. It is required for external reporting to shareholders
3. It treats direct manufacturing costs as a product cost
4. It includes fixed manufacturing overhead as an inventoriable cost

Tauton Company uses the high low to estimates its cost function. The information for 2017 is provided below:

Machine hours costs

Highest observation of cost driver 4000 332000

Lowest observation of cost driver 3000 312000

What is the estimated total cost when 1900 machine hours are used?

1. 509600
2. 290000
3. 157700
4. 489700

Quantum Company uses the high low method to estimate the cost function the information for 2017 is provided below:

Machine hours costs

Highest observation of cost driver 1000 32000

Lowest observation of cost driver 200 16000

What is the constant for the estimated cost equation?

1. 12000
2. 32000
3. 16000
4. 20000

Which cost estimating method uses time and motion studies to reveal that to make a high quality mens suit jacket it takes of 3 hours of direct labor effort per jacket and 5 minutes of a salaried manager to perform quality control?

A. the accrual accounting method

B .the industrial engineering method

C .the cash accounting method

D .the high low method