ACCT 5315 Module 15 Quiz Questions

Which of the following costs is best classified as fixed costs with respect to volume?

Depreciation of a copy machine in the Human Resource Department

Step costs

are constant within certain ranges of activity but differ outside those ranges of activity.

The range of operations that falls within the capacity of the current or expected level of fixed costs is referred to as the

relevant range.

Which of the following is an example of a discretionary fixed cost?

Donations to charitable organizations

The determination of the mathematical relationship between a cost driver and cost is known as:

cost estimation.

Comparing least-squares regression to high-low estimation

least-squares regression makes fuller use of the data.

This creates difficulties in cost estimations

all of these

As volume decreases, which of the following statements is correct?

Fixed cost per unit will increase

Tax preparers of a small tax firm track and bill time for each client. Relative to the tax returns prepared by the tax firm, the cost of the salaries of the tax preparers are classified as

variable and indirect

Mixed cost behavior pattern is unrelated to unit activity level.

False

The primary advantage of the high-low method of cost estimation over the least-squares regression method is its Limited data requirements.

True

An increase in volume within the relevant range will cause

total fixed costs to stay the same.

Which of the following methods of cost estimation utilizes all observations and relies on statistical measures to determine the cost estimation model?

Least-Squares Regression