ACG 2071 Chapter 5 Exam Questions with Correct Answers
Question 1:
Each of the following are methods used to separate mixed costs into their fixed and variable
components except:
Answer:
low-high method
Question 2:
Which of the following is the correct statement about variable costs?
Answer:
The variable cost per unit does not change when volume changes.
Question 3:
Jack works on the production line at an assembly plant. Jack receives a base salary plus $1.25
per unit assembled. This is an example of a
Answer:
cost. mixed
Question 4:
True or false: On a scatter diagram, costs are plotted on the horizontal axis.
Answer:
False
Question 5:
Match each example below to the correct cost type.
Answer:
Fixed - Office salaries Mixed - Sales rep pay which includes salary plus commission Variable -
direct materials
The three methods used to classify costs into their fixed and variable components includes
high-low method regression
scatter diagrams
Question 6:
Which of the following is the correct statement about fixed costs?
Answer:
The fixed cost per unit will decrease when volume increases.
, Question 7:
When using the high-low method, the slope represents:
Answer:
the variable cost per unit
Question 8:
When preparing a scatter diagram, the estimated line of cost behavior is drawn on a scatter
diagram to show the relation between:
Answer:
cost and unit volume
Question 9:
Match each example below to the correct cost type.
Answer:
Fixed - Depreciation Variable - Direct materials Mixed - Water and electricity
Question 10:
A statistical method for identifying cost behavior is called
Answer:
regression or
least-squares regression
Question 11:
The high-low method uses
Answer:
points to estimate the cost equation. two
Question 12:
Match each cost estimation method to its characteristics.
Answer:
Scatter diagrams - Based on visual fit and subject to interpretation High-low method - Uses only
two sets of values
Question 1:
Each of the following are methods used to separate mixed costs into their fixed and variable
components except:
Answer:
low-high method
Question 2:
Which of the following is the correct statement about variable costs?
Answer:
The variable cost per unit does not change when volume changes.
Question 3:
Jack works on the production line at an assembly plant. Jack receives a base salary plus $1.25
per unit assembled. This is an example of a
Answer:
cost. mixed
Question 4:
True or false: On a scatter diagram, costs are plotted on the horizontal axis.
Answer:
False
Question 5:
Match each example below to the correct cost type.
Answer:
Fixed - Office salaries Mixed - Sales rep pay which includes salary plus commission Variable -
direct materials
The three methods used to classify costs into their fixed and variable components includes
high-low method regression
scatter diagrams
Question 6:
Which of the following is the correct statement about fixed costs?
Answer:
The fixed cost per unit will decrease when volume increases.
, Question 7:
When using the high-low method, the slope represents:
Answer:
the variable cost per unit
Question 8:
When preparing a scatter diagram, the estimated line of cost behavior is drawn on a scatter
diagram to show the relation between:
Answer:
cost and unit volume
Question 9:
Match each example below to the correct cost type.
Answer:
Fixed - Depreciation Variable - Direct materials Mixed - Water and electricity
Question 10:
A statistical method for identifying cost behavior is called
Answer:
regression or
least-squares regression
Question 11:
The high-low method uses
Answer:
points to estimate the cost equation. two
Question 12:
Match each cost estimation method to its characteristics.
Answer:
Scatter diagrams - Based on visual fit and subject to interpretation High-low method - Uses only
two sets of values
