Kindly answer all questions: 1.) Cost behavior is considered linear whenever a straight line is a reasonable approximation for the relation between cost and activity. A. True B. False
Kindly answer all questions: 1.) Cost behavior is considered linear whenever a straight line is a reasonable approximation for the relation between cost and activity. A. True B. False
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 1P: The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent...
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Kindly answer all questions:
1.) Cost behavior is considered linear whenever a straight line is a reasonable approximation for the relation between cost and activity.
A. True
B. False
2.) Which of the following is an example of a cost that is variable with respect to the number of units produced?
A. rent on administrative office building
B. rent on factory building
C. Salaries of top marketing executives
D. direct labor cost, where the direct labor force is adjusted to actual production of
the period
3.) Fixed costs are constant in total amount over the relevant range of operations.
A. True
B. False
4.) The cost function derived by the simple least squares method:
A. must be tested for minimum and maximum points.
B. is parabolic.
C. is linear.
D. is curvilinear.
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