Managerial Accounting
Practice
Exam
2
Chapters
41516
1.
Which
costs
will
change
with
an increase
in activity within
the relevant
range?
A. Unit fixed
cost and
total
fixed
cost
B.
Unit
variable
cost and
total
variable cost
@Unit
fixed
cost and
to'ral
variable
cost
D.
Unit fixed
cost and
unit
variable
cost
2. With
respect
to
a
fixed
cost,
an increase
in
the
activity
level
within
the relevant
range
results
in:
A.
an increase
in
fixed
cost
per
unit.
B.
a
proportionate
increase
in total
fixed
costs.
C.
an
unchanged
fixed
cost
per unit.
@
decreasJin fixed
cost
per
unit.
3.
In
the
stan<iard
cost
formuia
Y
:
a
*
bX,
what
cioes
the
"Y"
represent?
@total
cost
B. total
fixed
cost
C.
total variable
cost
D.
variable
cost
per
unit
4. The
leastsquares
regression method:
@fits
a
regression
line
by
minimizing
the sum
of
the
squared
errors
from
the regression line.
B.
is generally
less accurate
than the scattergraph method.
l.
can be used
only
if
the
fixed
cost element
is
larger
than
the
variable
cost
element.
D.
is tire orriy trrciitud
aur:eptzrbie urrcicr
gcrreraiiy aucepivti
ausuuriirrg
prirrcipiys.
5.
Edde Corporation
has
provided
the
following
production
and
total
cost
data
for two levels of
monthly
.
Thecompanyproducesasingleproduct.
N,
2a,\,201/\)j)
=
if2
:J
:
:
::
'#JfiT
''.31;;:ilJ;
ii
z\r
iu1"ir
i:
=
5r
,e0
.
$219,600
$2745oo
I
I
lv'/

Manufaoturing
ovelhead
$320,400
$343,000
V
r.xa\
?{1
Oi.:
'i?.,i",\
]
_
22
b0
The
best
estimate
of
the
total
variable
manufacturing
cost
per
unit
is:
A.
s127.70
'Ssr5o.3o
c.
$22.60
D.
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 '09
 Buck,Carroll
 Managerial Accounting, ........., gross margin

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