Cost estimate made using activity levels outside the relevant: a. Many results in poor decisions b. Are more accurate c. Mean that cost behavior patterns are accurate at all levels of activity. d. Meant the cost estimate will be relevant e. None of these.

Cost estimate made using activity levels outside the relevant: a. Many results in poor decisions b. Are more accurate c. Mean that cost behavior patterns are accurate at all levels of activity. d. Meant the cost estimate will be relevant e. None of these.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 12MC: Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...

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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.
1 Consider the following statements concerning costs. When making decisions, relevant costs that are not capable of reliable measurement should: 1. Rank below those that can be reliably measured. 2. Be weighted by managers using their judgement. Are the above statements true or false? Statement 1 Statement 2 A. False True B. False False C. True True D. True False
Complete the following statements with one of the terms listed here: You may use a term more than once and some terms may not be used at all. Differential Costs Irrelevant Costs Controllable Costs Marginal Costs Fixed Costs Average Cost Uncontrollable Costs Sunk Costs Variable Costs 1. For decision-making purposes, costs that do not differ between alternatives are 2. Costs that have already been incurred are called 3. Managers cannot influence .........in the short run. 4. Total stay constant over a wide range of production volumes. 5. The. action. is the difference in cost between two alternative courses of 6. The product's is the cost of making one more unit. Total costs decrease when production volume decreases. 7. A product's and ............ not the product's should be used to forecast total costs at different production volumes.
Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.
Which of the following is not a characteristic of a good performance measurement system? A. timely B. consistent C. based on activities over which managers have no control or influence D. uses both long- and short-term performances and standards
What advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?
These questions aren't very hard so pls help 1-5
R-squared is a measure of a. The spurious relationship between cost and activity b. The fxed cost component C The variable cost per unit activity d. How well the regression line accounts for the changes in the dependent variable
← Responsibility reports are used for O A. costs that the segment manager cannot control OB. looking at just actual revenues that have incurred OC. looking at just actual costs that have incurred OD. performance evaluations
In the cost equation TC = F + VX, “V” is best described as the: Multiple Choice intercept of the cost equation. total costs that do not vary with changes in the activity level. activity level used to estimate the dependent variable. slope of the cost equation.
If the organization operates at an activity level outside the relevant range, any cost predictions based on data from the relevant range may not be very accurate. True or False?
Which of the following about the residual switch cost is true? a. The residual switch cost decreases and disappears the longer you prepare for a task. b. The preparation effect shows that the residual switch cost only applies to difficult tasks. c. The residual task - switch cost is higher than the task - switch cost. d. The task - switch cost is equal to the residual task - switch cost. e. Preparation time does not eliminate residual switch cost.