1. 
The relationship between cost and activity is called:

3. 
A cost that has both a fixed and variable component is
called a:

5. 
A cost that changes in total in direct proportion to a
change in the cost driver is a:

7. 
Variable cost per unit:

8. 
Fixed costs per unit:

10. 
The fixed costs per unit are $10 when a company makes 10
000 units. What are the per unit fixed costs when 12 500
units are produced?

12. 
Total costs are $140 000 when 10 000 units are made. Of
this amount, variable costs are $4 per unit. What are the
total costs when 8000 units are produced?

14. 
Which per unit cost does the slope of the total cost line
represent?

16. 
The relevant range is that range of activity where:

18. 
As a firm begins to operate outside the relevant range, the accuracy of cost estimates for fixed and variable costs:

21. 
Within the relevant range, a curvilinear cost function can
be graphed as a:

23. 
The method of cost estimation that minimises the sum of the
squared deviations between the cost line and the data
points is:

25. 
Technical Engineering presently leases a copying machine on
a monthly basis. The lease agreement requires a fixed fee
each month in addition to a charge per copy. Technical
Engineering made 2400 copies and paid a total of $162 in
rent in September and in October they paid $195 for 3500
copies. Determine Technical Engineering's variable cost per
copy.

27. 
Technical Engineering presently leases a copying machine on
a monthly basis. The lease agreement requires a fixed fee
each month in addition to a charge per copy. Technical made
2400 copies and paid a total of $162 in rent in September
and in October they paid $195 for 3500 copies. Determine
the total amount that would be paid for 1800 copies.

29. 
Yang Manufacturing makes a product called Yin. The relevant
range of operations is between 2500 units and 10 000 units
of Yin per month. Per unit costs at two activity levels are
as follows: 5000 units at $17.00 per unit; 7500 units at
$13.00 per unit. Determine their total cost if Yang
produces 10 000 units.

31. 
The Longreach Toy Factory has determined machine hours to
be the cost driver of the company's electricity costs.
During the first six months of the year, the company
incurred the following electricity costs:

33. 
Which of the following are problems frequently encountered
in data collection?

35. 
If very short time periods such as a week are used for a regression study, rather than longer periods such as a month:

37. 
In activitybased costing analysis, the manufacturing
manager's salary is classified as:

39. 
In activitybased costing analysis, setup costs are
classified as:

41. 
In which approach to costs estimation, is task analysis
used?

43. 
Which of the following statements are assumptions
underlying cost estimation?

45. 
Which of the following are important in estimating the cost
of machine maintenance?

47. 
In the regression formula Y = a + bX, b is:

49. 
For a fixed cost, as volume increases:

51. 
Lawson Lumber uses the high–low method to estimate electricity cost, which varies in relation to machine hours. Based on the following data, how would the cost function be stated if ‘X' is the number of machine hours?

53. 
For a manufacturer of kitchens, which of the following
would you expect to be a direct cost?

55. 
Which of the following can always be physically traced to
the cost object?

57. 
Which term describes a cost resulting from the existence of
the organisational structure and premises used by the firm?

59. 
An example of a discretionary cost for a firm that
manufactures furniture is:

61. 
Which of the following statements about the coefficient of
determination (R^{2}) is correct?

64. 
The following is an extract of a cost report for Big Whale
Car Wash for the six months from June to November.
Management considers the activities in these six months as
within the relevant range for the purpose of cost
estimation.

68. 
When a manager notices an outlier during the cost
estimation process, the appropriate response is to:

75. 
Units produced 12 000 15 000

77. 
Research and development costs are an example of
discretionary costs.

79. 
Economic plausibility is one of the criteria used to
evaluate a particular regression line.

81. 
Regression analysis is a superior statistical method to the
high–low method because it utilises all data when
determining the line of best fit.

83. 
Assume the costs of a service department are driven by the
number of service orders and the equation for calculating
the costs of a service department is y = $5 000 + $3x. The
cost of the department if there were 6 000 orders would be
$25 000.

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