1) What understanding did Betty have about cost of behavior of these costs?MOH Cost: a) fixed b)Variable c)MixedPizza Cost: a) fixed b)Variable c)Mixed2)What understanding did Mark have about cost of behavior of these costs?MOH Cost: a) fixed b)Variable c)MixedPizza Cost: a) fixed b)Variable c)Mixed3)Recognizing that these were the only two pieces of data they had, which method of cost estimation did they likely use?Betty: a)Accounting Analysis Method b)High Low-Method c)Regression MethodMark: a)Accounting Analysis Method b)High Low-Method c)Regression Method Betty and Mark met with the supervisor of the pizza division of a medium-sized Italian food supplier. The supervisor explained the twokey costs in his division, as follows.Cost TypeEach pizzaMOHNumber of Units3,200Betty's cost modelMark's cost model3,200Total$13,440$3,840Although Betty and Mark used this data to estimate a model for the division's costs, they each came up with a different model, asfollows.Total pizza division cost = $4.20 (number of pizzas) + $3,840Total pizza division cost = $5.40 (number of pizzas)

1) as per Betty's Cost model MOH Cost: a) fixedPizza Cost: b)Variable 2) as per Mark's Cost…

Betty and Mark met with the supervisor of the pizza division of a medium-sized Italian food supplier. The supervisor explained the two key costs in his division, as follows. Cost Type Each pizza MOH Number of Units 3,200 Betty's cost model Mark's cost model 3,200 Total $13,440 $3,840 Although Betty and Mark used this data to estimate a model for the division's costs, they each came up with a different model, as follows. Total pizza division cost = $4.20 (number of pizzas) + $3,840 Total pizza division cost = $5.40 (number of pizzas)

Betty and Mark met with the supervisor of the pizza division of a medium-sized Italian food supplier. The supervisor explained the two key costs in his division, as follows. Cost Type Each pizza MOH Number of Units 3,200 Betty's cost model Mark's cost model 3,200 Total $13,440 $3,840 Although Betty and Mark used this data to estimate a model for the division's costs, they each came up with a different model, as follows. Total pizza division cost = $4.20 (number of pizzas) + $3,840 Total pizza division cost = $5.40 (number of pizzas)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What type of cost drivers do modern costing systems use and how does it differ from the cost drivers…

A: Cost Driver Business activities are influenced by a cost driver . Cost drivers are the factors…

Q: The definition of the cost is the collection of cost data in some organized way by means of an…

A: Cost is amount of cost incurred

Q: Is

Q: Break-even analysis can help compare locations on the basis of factors that are expressed in terms…

A: Introduction: Break-even analysis stands as a critical tool for businesses assessing the financial…

Q: Understand costclassifications used in makingdecisions: differential costs,opportunity costs, and…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Which method separating mixed cost is most accurate? Provide reasons for your answer based on the…

A: Cost under accounting can be of two types i.e. fixed cost and variable cost. The accosting records…

Q: What is lower of cost/market, and why is it used? Provide an example.

A: Inventory is a term which depicts the amount of finished goods prevailing in the business. The…

Q: The best allocation base for a cost pool would be the one:

A: Cost pools are often formed to simplify the cost allocation process and to guarantee that related…

Q: he following statements are incorrect, except a. Cost is the same with expense. b. All costs…

A: Cost accounting refer to the outflow of money for the purpose of acquiring assets, producing goods…

Q: What is the difference between a direct cost and an opportunity cost. Can you show the difference…

A: Direct cost and opportunity cost are two types of costs used in cost accounting.

Q: In our assignments should we use a table as shown in solutions or we can just simply write as an…

A: COGM stands for Cost of Goods Manufactured refers to the aggregate cost of goods that are…

Q: re mixed costs treated? Answer:

A: Mixed Cost - Mixed cost is the combination of two categories of costs, namely fixed and variable…

Q: 1. Multiple-Choice Question - FIFO When using FIFO, A) Identical costs go to the balance sheet and…

A: FIFO is one of the inventory valuation method being used in business. FIFO means first in first out.…

Q: Dish N' Dat Company Product-Line Income Statement For the Month Ended May 31 Bowls Plates Cups Sales…

A: Discontinued operations describes a part of a firm's operations that have been divested or shut…

Q: ________ are the costs associated with not choosing the other alternative.A. Sunk costsB.…

A: The term "cost" alludes to the overall expense incurred in the production of goods and services as…

Q: The high-low method used in determining costs can be used to estimate the cost queation using just…

Q: In your own words, explain what differential costs mean. How are fixed costs and variable costs…

A: The cost can be classified on the basis of nature variable or fixed. The variable cost are directly…

Q: Which of the following statements is true? Select one: O a. The most complex of the cost estimation…

A: High-low method: It is the method of estimating the variable cost per unit and the fixed costs by…

Q: Which of the following statements is true of ABC systems? A) ABC systems are time-driven cost…

A: Activity-based costing (ABC) is a method of assigning overhead based on activities, which are…

Q: Identify each of these costs as fixed, variable, or mixed.

Q: Which of the following is not an application of cost-volume-profit analysis? Setting prices…

A: The objective of the question is to identify which of the given options is not an application of…

Question

1) What understanding did Betty have about cost of behavior of these costs?

MOH Cost: a) fixed b)Variable c)Mixed

Pizza Cost: a) fixed b)Variable c)Mixed

2)What understanding did Mark have about cost of behavior of these costs?

MOH Cost: a) fixed b)Variable c)Mixed

Pizza Cost: a) fixed b)Variable c)Mixed

3)Recognizing that these were the only two pieces of data they had, which method of cost estimation did they likely use?

Betty: a)Accounting Analysis Method b)High Low-Method c)Regression Method

Mark: a)Accounting Analysis Method b)High Low-Method c)Regression Method

Betty and Mark met with the supervisor of the pizza division of a medium-sized Italian food supplier. The supervisor explained the two
key costs in his division, as follows.
Cost Type
Each pizza
MOH
Number of Units
3,200
Betty's cost model
Mark's cost model
3,200
Total
$13,440
$3,840
Although Betty and Mark used this data to estimate a model for the division's costs, they each came up with a different model, as
follows.
Total pizza division cost = $4.20 (number of pizzas) + $3,840
Total pizza division cost = $5.40 (number of pizzas)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 1 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
When using the general methods to estimate cost behavior, A. It is a good idea to use multiple methods so results can be compared B. Managers often apply their own best judgement as a first step in the estimation process C. Results are likely to differ from method to method D. Large differences in methods suggest that the cost cannot be estimated.
Give the general formula for a mixed cost. What does each term represent? Provide an example of a product or service with a mixed cost.
A cost that cannot be changed because it arises from a past decision and is irrelevant to future decisions is a. An uncontrollable cost. d. An opportunity cost. b. An out-of-pocket cost. e. An incremental cost. c. A sunk cost.
Explain why cost predictions based on the same cost driver can differ when applying the high-low method and regression analysis. State one advantage and one disadvantage of the high-low method.
Can someone help by providing an example of revenues and costs that would be impacted by outsourcing decision using ration analysis?
Which of the following is not a method used by managers to determine cost behavior? High-low Method Scatterplot Account analysis Regression Analysis Derivation
Why do you use incremental cost analysis when picking alternatives and how do you constuct a choice table
Least-squares regression is a statistical method for identifying cost behavior. True or False True
Suppose that Target uses FIFO costing method but decided to change to the LIFOmethod. What are the steps Target would take to account for and report the change?