Horn_CH_10TB 13

# Answer true diff1 terms costestimation objective 8

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Unformatted text preview: odel, then the second unit will take only 90 minutes to manufacture. Answer: FALSE Explanation: 100 × .90 = 90; (100 + X)/2 = 90; X = 80 minutes Diff: 3 Terms: learning curve, cumulative average-time learning model Objective: 7 AACSB: Reflective thinking 52) The al unit-time learning model with a 90% learning curve indicates that if it takes 100 minutes to manufacture the first unit of increment a new model, then the second unit will take only 90 minutes to manufacture. Answer: TRUE Diff: 2 Terms: incremental unittime learning model Objective: 7 AACSB: Reflective thinking 53) A learning curve is a function that measures how labor-hours per unit decrease, as units of production increase. Answer: TRUE Diff: 2 Terms: learning curve Objective: 7 AACSB: Reflective thinking 54) Data collection problems can arise when data is recorded manually rather than electronically. Answer: TRUE Diff: 1 Terms: cost estimation Objective: 8 AACSB: Use of Information Technology 55) Misinterp retation of data can arise when fixed costs are reported on a per unit basis. Answer: TRUE Diff: 2 Terms: cost estimation Objective: 8 AACSB: Reflective thinking 56) Inflation is a fact, and therefore its influence should not be removed from the data. Answer: FALSE Explanation: Inflation can distort data that are compared over time so purely inflationary effects should be removed. Diff: 2 Terms: cost estimation Objective: 8 AACSB: Reflective thinking 57) Fixed sometimes allocated to individual products as part of the standard costing system. When this is the case, they should be costs are treated as variable costs for purposes of future cost estimation. Answer: FALSE Explanation: The danger is to regard these costs as variable rather than fixed. The analyst should distinguish carefully fixed costs from variable costs and not treat allocated fixed cost per unit as a variable cost. Diff: 2 Terms: cost estimation Objective: 8 AACSB: Reflective thinking 58) The coefficient of determination (r2) measures the percentage of variation in Y explained by X (the independ...
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