Theinformationfor20x5isprovidedbelow machine hours

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Unformatted text preview: asure goodness of fit Answer: C Diff: 3 Terms: high-low method Objective: 4 AACSB: Reflective thinking 110) Put the method of estimating a cost function: following A = Identify the cost function steps in B = Calculate the constant order for C = Calculate the slope coefficient using the D = Identify the highest and lowest observed values high-low A) D C A B B) C D A B C) A D C B D) D C B A Answer: D Diff: 2 Terms: cost estimation, cost function Objective: 4 AACSB: Analytical skills 111) Regressio n analysis: A) is simple to compute B) measures the change in a dependent variable associated with one or more independent variables C) is mathematical so it does not require an understanding of operations D) uses the constant to measure goodness of fit Answer: D Diff: 3 Terms: regression analysis Objective: 4 AACSB: Reflective thinking 112) Simple regression differs from multiple regression in that: A) multiple regression uses all available data to estimate the cost function, whereas simple regression only uses simple data B) simple regression is limited to the use of only the dependent variables and multiple regression can use both dependent and independent variables C) simple regression uses only one independent variable and multiple regression uses more than one independent variable D) simple regression uses only one dependent variable and multiple regression uses more than one dependent variable Answer: C Diff: 2 Terms: simple regression Objective: 4 AACSB: Reflective thinking 113) The slope of the line of regression is the: A) rate at which the dependent variable varies B) rate at which the independent variable varies C) level of total fixed costs D) level of total variable costs Answer: A Diff: 2 Terms: regression analysis, slope coefficient Objective: 4 AACSB: Reflective thinking Answer the following questions using the information below: The Hunter Company uses the high-low method to estimate the cost function. The information for 20X5 is provided below: Machine -hours Labor Costs Highest observation of cost driver 400 $10,000 Lowest...
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This note was uploaded on 12/12/2012 for the course SB 305 taught by Professor Brown during the Spring '08 term at Clarkson University .

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