Horn_CH_10TB 13

# Whatcostfunctionbest thecost representsthesecosts a

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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...
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