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Unformatted text preview: Managerial Accounting Quiz Chapter 4 1. Within the relevant range, a change in activity results in a change in total variable cost and the per unit fixed 2q_ (trg) rase 2. Commjtted fixed costs have a short-term planning horizon-usually one year. rrue @ 3. The high-low method is generally more accurate than the least-squares regression method in analyzing cost behavior. r-" 6JD 4. The high and low points used in the high-low method tend to be unusual and therefore the cost formula may not accuratelv reoresent all ofthe data. @ False 5. A is a fixed cost; B is a variable cost. During the current year the level of activity has decreased but is still within the relevant range. We would expect that: A. The cost per unit of A has remained unchanged. B. The cost per unit of B has decreased. C. The cost Der unit ofA has decreased. .a,_, / D.IIhe cost per unit of B has remained unchanged. \J 6. Limousine Conversion Company purchases ordinary Cadillacs, cuts them in half, and then adds a middle6....
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This note was uploaded on 09/08/2010 for the course BUS 21 at San Jose State University .
- Managerial Accounting