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Unformatted text preview: gathered from various departments C) using significant amounts of historical data D) using the pooling of knowledge from each value chain function Answer: C Diff: 2 Terms: cost estimation, cost function Objective: 3 AACSB: Reflective thinking 79) Gathering cost information through observations and interviews from departments within an organization is known as the: A) account analysis method B) conference method C) industrial engineering method D) quantitative analysis method Answer: B Diff: 1 Terms: account analysis method Objective: 3 AACSB: Communication 80) Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods? A) the account analysis method B) the conference method C) the industrial engineering method D) the quantitative analysis method Answer: A Diff: 1 Terms: account analysis method Objective: 3 AACSB: Reflective thinking 81) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data? A) the account analysis method B) the conference method C) the industrial engineering method D) the quantitative analysis method Answer: D Diff: 1 Terms: cost function Objective: 3 AACSB: Reflective thinking 82) Which cost estimation method may use timeandmotion studies to analyze the relationship between inputs and outputs in physical terms? A) the account analysis method B) the conference method C) the industrial engineering method D) the quantitative analysis method Answer: C Diff: 1 Terms: cost estimation, industrial engineering method Objective: 3 AACSB: Reflective thinking Answer the following questions using the information below: At the Jordan Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $160,000.
Department
Number of employees
The number of new hires 83) A
30
8 B
270
12 C
100
5 If the number of employees is considered the cost driver, what amount of personnel costs will be allocated to Department A? A) $12,000 B) $5,333 C) $51,200 D) $20,000 Answ...
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 Spring '08
 BROWN

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