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| 1 | |
Which of the following cost drivers is a volume-based cost driver for a café specialising in coffee and cakes? |
| | A) | Number of cappuccinos sold. |
| | B) | Number of deliveries made to fulfil catering customer’s orders. |
| | C) | Number of batches of almond biscuits produced. |
| | D) | Number of kilowatt hours consumed. |
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| 2 | |
Mike Speed, an efficiency expert, was engaged in a consulting role at Applied Manufacturers to observe the steps required and the time taken by employees to perform a number of specific activities, such as the operation of the large metal-shaping presses. Estimating a cost function for the metal forming process is termed: |
| | A) | labour analysis |
| | B) | work measurement |
| | C) | account analysis |
| | D) | engineering analysis |
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| 3 | |
A high R2 measure in regression analysis is preferred because: |
| | A) | it indicates an adequate fit of the regression line through the data points |
| | B) | it indicates that a good proportion of the change in the independent variable is explained by the change in the dependent variable |
| | C) | it indicates that a high proportion of the change in the dependent variable is explained by the change in the independent variable |
| | D) | it means that the cost analyst can be 100% confident in his or her cost predictions based on the estimated cost behaviour |
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| 4 | |
Chris Cook rents a photocopying machine. In June, Chris made 2500 copies and paid a total of $325. In July, Chris paid $425 for 4500 copies. Chris’s variable cost per copy is: |
| | A) | $0.10 |
| | B) | $0.09 |
| | C) | $0.05 |
| | D) | $0.03 |
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| 5 | |
Chris Cook rents a photocopying machine. In June, Chris made 2500 copies and paid a total of $325. In July, Chris paid $425 for 4500 copies. Chris’s monthly fixed cost is: |
| | A) | $125 |
| | B) | $80 |
| | C) | $100 |
| | D) | $200 |
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| 6 | |
Chris Cook rents a photocopying machine. In June, Chris made 2500 copies and paid a total of $325. In July, Chris paid $425 for 4500 copies. Chris’s monthly cost is an example of a: |
| | A) | variable cost |
| | B) | step-fixed cost |
| | C) | curvilinear cost |
| | D) | semivariable cost |
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| 7 | |
Due to increased competition from cheap imports, Metal Engineering is investigating the cost behaviours within its production process. Which of the following is not a data collection problem for Metal Engineering? |
| | A) | Complete data. |
| | B) | Mismatched time periods. |
| | C) | Allocated fixed costs. |
| | D) | Trade-offs in choosing the time period. |
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| 8 | |
Since the introduction of the new model of refrigerator, Angler Enterprises has experienced a learning curve effect. A learning curve effect means that: |
| | A) | direct labour costs are likely to have a linear relationship with the volume of production |
| | B) | direct labour costs are likely to be constant per unit of production |
| | C) | direct labour costs are always variable costs |
| | D) | direct labour costs are unlikely to have a linear relationship with the volume of production |
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| 9 | |
When using regression analysis to estimate costs, the variable that is being predicted is the: |
| | A) | independent variable |
| | B) | dependent variable |
| | C) | interdependent variable |
| | D) | explanatory variable |
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| 10 | |
Crispy Crust Bakery has determined that three variables—the number of deliveries, the number of kilometres driven and the type of delivery vehicle—play a key role in determining the delivery cost. To arrive at an objective forecast of delivery costs for the next accounting period, Crispy Crust should use: |
| | A) | simple regression |
| | B) | multiple regression |
| | C) | a scatter diagram |
| | D) | the high–low method |
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