Cost Accounting Quiz 1 Review- Multiple Choice.docx - 1...

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1.McGuinness Company employs 8 individuals. They are all paid $14.50 per hour. How would total costs of personnel beclassified? a.mixed b.variable c.a variable cost within a relevant range d.a fixed cost within a relevant range 2. A linear cost function can only represent fixed cost behavior. a. True b. False 3.The conference method estimates cost functions: 4.When using the high-low method, the two observations used are the high and low observations of the: 5.Answer the following questions using the information below: The Delmonico Company uses the high-low method to estimate the cost function. The information for 2011 is provided below:Machine-hours Labor CostsHighest observation ofcost driver 400 $20,000 Lowest observation of cost driver 240 $13,600 What is the constant for the estimating cost equation? 6.Goodness-of-fit measures how well the predicted values in a cost estimating equation: a.match the cost driver b.match the actual cost observations c.rely on the independent variable d.determine the level of activity 7.Examples of nonlinear cost functions include all of the following EXCEPT:
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  • Fall '19
  • total costs of personnel

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