55. The Business School at Eastern College is accumulating data as a first step in the
preparation of next year’s budget development. One cost that is being looked at closely is
administrative costs as a function of student credit hours. Data on administrative costs and credit
hours for the past thirteen months are shown below:
If the controller uses the high-low method to estimate costs, the cost equation for administrative
salaries is:
5-43
56. The Business School at Eastern College is accumulating data as a first step in the
preparation of next year’s budget development. One cost that is being looked at closely is
administrative costs as a function of student credit hours. Data on administrative costs and credit
hours for the past thirteen months are shown below:
The controller’s office has analyzed the data and has given you the results from the regression
analysis:
Based on the results of the high-low analysis, the estimate of administrative costs in a month with
1,000 credit hours would be: (rounded to the nearest whole dollar)
5-45
57. The Business School at Eastern College is accumulating data as a first step in the
preparation of next year’s budget development. One cost that is being looked at closely is
administrative costs as a function of student credit hours. Data on administrative costs and credit
hours for the past thirteen months are shown below:
The controller’s office has analyzed the data and has given you the results from the regression
analysis:
If the controller uses regression analysis to estimate costs, the cost equation for administrative
salaries is:
5-47
58. The Business School at Eastern College is accumulating data as a first step in the
preparation of next year’s budget development. One cost that is being looked at closely is
administrative costs as a function of student credit hours. Data on administrative costs and credit
hours for the past thirteen months are shown below:
The controller’s office has analyzed the data and has given you the results from the regression
analysis:
If the controller uses regression analysis to estimate costs, the estimate of the variable portion of
administrative salaries is:
5-48
59. The Business School at Eastern College is accumulating data as a first step in the
preparation of next year’s budget development. One cost that is being looked at closely is
administrative costs as a function of student credit hours. Data on administrative costs and credit
hours for the past thirteen months are shown below:
The controller’s office has analyzed the data and has given you the results from the regression
analysis:
If the controller uses regression analysis to estimate costs, the estimate of the fixed portion of
administrative salaries is:
5-50
60. The Business School at Eastern College is accumulating data as a first step in the
preparation of next year’s budget development. One cost that is being looked at closely is
administrative costs as a function of student credit hours. Data on administrative costs and credit
hours for the past thirteen months are shown below:
The controller’s office has analyzed the data and has given you the results from the regression
analysis:
Based on the results of the regression analysis, the estimate of administrative costs in a month
with 1,000 credit hours would be: (rounded to the nearest whole dollar)
5-52
61. The Business School at Eastern College is accumulating data as a first step in the
preparation of next year’s budget development. One cost that is being looked at closely is
administrative costs as a function of student credit hours. Data on administrative costs and credit
hours for the past thirteen months are shown below:
The controller’s office has analyzed the data and has given you the results from the regression
analysis:
The correlation coefficient for the regression equation for administrative costs is:
5-54
62. The Business School at Eastern College is accumulating data as a first step in the
preparation of next year’s budget development. One cost that is being looked at closely is
administrative costs as a function of student credit hours. Data on administrative costs and credit
hours for the past thirteen months are shown below:
The controller’s office has analyzed the data and has given you the results from the regression
analysis:
The percent of the total variance that can be explained by the regression is:
5-56
63. The Business School at Eastern College is accumulating data as a first step in the
preparation of next year’s budget development. One cost that is being looked at closely is
administrative costs as a function of student credit hours. Data on administrative costs and credit
hours for the past thirteen months are shown below:
The controller’s office has analyzed the data and has given you the results from the regression
analysis:
5-57
Based on the results of the regression analysis, the estimate of the variable portion of
administrative costs in a month with 200 credit hours would be:
64. In determining cost behavior in business, the cost function is often expressed as Y = a +
bX. Which one of the following cost estimation methods should not be used in estimating fixed
and variable costs for the equation? (CMA adapted)
65. Which of the following is the difference between variable costs and fixed costs: (CMA
adapted)
66. Which of the following may be used to estimate how inventory warehouse costs are
affected by both the number of shipments and the weight of the material handled? (CPA
adapted)
67. A cost driver is defined as: (CMA adapted)
68. In the learning curve equation Y = aXb, the Y term represents:
69. In the learning curve equation Y = aXb, the X term represents: