ACCT 2302 Exam 2 Review Latest Update
Total Variable Costs - ANSWER Changes proportionally with changes in the volume of
activity.
Which of the following costs does not change in total despite changes in volume? -
ANSWER Fixed Costs
Total mixed costs graphs slope upward and begin at the origin - ANSWER False
What is the cost equation - ANSWER y=vx+f
(Variable costs)x(Unit/Volume)+Fixed Costs
A 15% increase in production volume will result in - ANSWER 15% increase in total
variable costs
Which the most accurate method to analyze cost behavior? - ANSWER Regression
Analysis
When using High-Low method, we choose the high and low data points based on -
ANSWER Volume or Activity
The R-Sqaure - ANSWER Shows how well the line fits data points, higher r-squares
indicates strong relationships between costs and volume, R-Square>.8 means a reliable
cost equation
under variable costing costs include - ANSWER Direct Labor, Direct Materials, and
Variable MOH
CM= - ANSWER revenues-variable costs
SR-VE= CMR
1-VE=CMR
((SP-VC)/SP)
When production exceeds sales the NOI reported under absorption costing is -
ANSWER Greater than NOI under variable costs
Total Variable Costs - ANSWER Changes proportionally with changes in the volume of
activity.
Which of the following costs does not change in total despite changes in volume? -
ANSWER Fixed Costs
Total mixed costs graphs slope upward and begin at the origin - ANSWER False
What is the cost equation - ANSWER y=vx+f
(Variable costs)x(Unit/Volume)+Fixed Costs
A 15% increase in production volume will result in - ANSWER 15% increase in total
variable costs
Which the most accurate method to analyze cost behavior? - ANSWER Regression
Analysis
When using High-Low method, we choose the high and low data points based on -
ANSWER Volume or Activity
The R-Sqaure - ANSWER Shows how well the line fits data points, higher r-squares
indicates strong relationships between costs and volume, R-Square>.8 means a reliable
cost equation
under variable costing costs include - ANSWER Direct Labor, Direct Materials, and
Variable MOH
CM= - ANSWER revenues-variable costs
SR-VE= CMR
1-VE=CMR
((SP-VC)/SP)
When production exceeds sales the NOI reported under absorption costing is -
ANSWER Greater than NOI under variable costs
