Horn_CH_10TB 13

Whatcostfunctionbest thecost representsthesecosts a

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: me time that insurance costs increase. D) It makes sense complex product has a large number of parts it will take longer to assemble than a simple product with fewer parts. that if a Answer: C Diff: 3 Terms: cost function Objective: 2 AACSB: Reflective thinking 65) Doughert Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a y month. How would total costs of personnel be classified? A) variable B) mixed C) a variable cost within a relevant range D) a fixed cost within a relevant range Answer: B Diff: 2 Terms: mixed cost Objective: 2 AACSB: Analytical skills 66) McDevitt Company employs 6 individuals. They are all paid $12.50 per hour. How would total costs of personnel be classified? A) variable B) mixed C) a variable cost within a relevant range D) a fixed cost within a relevant range Answer: A Diff: 2 Terms: variable cost Objective: 2 AACSB: Analytical skills 67) For components of a picture frame include $0.35 for the glass, $.65 for the wooden frame, and $0.80 for assembly. The January, assembly desk and tools cost $400. 1,000 frames are expected to be produced in the coming year. What cost function best the cost represents these costs? A) y = 1.80 + 400X B) y = 400 +1.80X C) y = 2.20 + 1,000X D) y = 1.00 + 400X Answer: B Diff: 2 Terms: linear cost function Objective: 2 AACSB: Analytical skills 68) The cost air conditioner include $35 for the compressor, $11.50 for the sheet molded compound frame, and $80 per unit for componen assembly. The factory machines and tools cost is $55,000. The company expects to produce 1,500 air conditioners in the ts of an coming year. What cost function best represents these costs? A) y = 1500 + 126.5X B) y = 1,500 +55,000X C) y = 55,000 + 1,500X D) +126.50X y = 55,000 Answer: D Diff: 2 Terms: linear cost function Objective: 2 AACSB: Analytical skills 69) A linear cost function can represent: A) mixed cost behaviors B) fixed cost behaviors C) variable cost behaviors D) All of these answers are correct. Answer: D Diff: 2 Terms: linear cost function Objective: 2 AACSB: Reflective thinking 70) The cost function y = 1,000 + 5X: A) has a slope coefficient of 1,000 B) has an intercept of 5 C) is a straight line D) represents a fixed cost Answer: C Diff: 2 Terms: linear cost function Objective: 2 AACSB: Analytical skills 71) The cost func...
View Full Document

Ask a homework question - tutors are online