Assessment on chapter 5 class

# Assessment on chapter 5 class - Accounting 202 Assessment...

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Accounting 202 Assessment on Chapter 5 1. The level of activity increases within the relevant range, how does each of the following change? 2. The linear equation Y = a + bX is often used to express cost formulas. In this equation: A. the b term represents variable cost per unit of activity. B. the a term represents variable cost in total. C. the X term represents total cost. D. the Y term represents total fixed cost. 3. An example of a cost that is variable with respect to the number of units produced and sold is: A. insurance on the headquarters building. B. power to run production equipment. C. supervisory salaries. D. depreciation of factory facilities. 4. The controller of JoyCo has requested a quick estimate of the manufacturing supplies needed for the month of July when production is expected to be 470,000 units. Below are actual data from the prior three months of operations. Using these data and the high-low method, what is the best estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.)

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## This note was uploaded on 03/01/2011 for the course ACCT 202 taught by Professor Andes during the Winter '11 term at Northwestern.

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Assessment on chapter 5 class - Accounting 202 Assessment...

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