Question 1

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Relies on the quality of the subjective judgment of the analyst

Accepted Answer

The scattergraph method relies on the subjective judgment of the analyst to plot the data points and determine the line of best fit. The high-low method and least squares method use mathematical formulas and calculations to determine the cost behavior.

Question 2

Select the appropriate classification of each of the items listed below.
-6.53x

Accepted Answer

The answer of Select the appropriate classification of each of...

Question 3

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Is a statistical method

Accepted Answer

The least squares (regression) method is a statistical method used to estimate a linear relationship between two variables. The high-low method and scattergraph method are not statistical methods but are used to estimate costs.

Question 4

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Involves plotting data points on a graph

Accepted Answer

The scattergraph method involves plotting data points on a graph. The high-low method involves using the highest and lowest data points to estimate the variable cost per unit, and the least squares method involves determining the line of best fit for a set of data points.

Question 5

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Results in the best-fitting line through a set of data points

Accepted Answer

The least squares (regression) method is used to determine the best-fitting line through a set of data points. The high-low method is used to separate mixed costs into fixed and variable components based on the highest and lowest activity levels, and the scattergraph method is used to visually show the relationship between two variables.

Question 6

Select the appropriate classification of each of the items listed below.
-99%

Accepted Answer

99% is the coefficient of determination, which measures the strength of the relationship between two variables. This is a measure of how well the independent variable explains the variation in the dependent variable.

Question 7

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Allows a cost analyst to inspect the data visually

Accepted Answer

The scattergraph method allows a cost analyst to inspect the data visually by plotting the data points on a graph. The high-low method calculates the cost function based on the highest and lowest activity levels, and the least squares method finds the best-fit line through all the data points using statistical techniques. Therefore, the best choice for visually inspecting the data is the scattergraph method.

Question 8

Select the appropriate classification of each of the items listed below.
-Cost = intercept + X variable 1 × driver

Accepted Answer

The given equation represents a cost equation, which is used to predict or estimate the total cost incurred at different levels of activity or usage of a particular resource (X variable 1). The intercept is the fixed cost, which is incurred regardless of the level of activity, and the slope of the equation (coefficient) represents the variable rate or variable cost per unit of the driver. The coefficient of determination (R-squared) is not relevant in this case as it measures the strength of the relationship between variables, which is not explicitly mentioned in the equation given.

Question 9

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-May reveal the presence of outliers

Accepted Answer

The scattergraph method is the best choice for revealing the presence of outliers, as it involves graphing the data points on a scatter plot and looking for any unusual or unexpected patterns. The high-low method and least squares method are both used for estimating costs, but do not specifically identify outliers in the data.

Question 10

Select the appropriate classification of each of the items listed below.
-$9097.80

Accepted Answer

The answer of Select the appropriate classification of each of...

Question 11

Select the appropriate classification of each of the items listed below.
-$6.53 × independent variable

Accepted Answer

The item given here is the multiplication of 6.53 with an independent variable, which means the cost will vary according to the changes in the independent variable. Hence, it is a variable cost.

Quiz 3: Cost Behaviour

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Relies on the quality of the subjective judgment of the analyst

Select the appropriate classification of each of the items listed below. -6.53x

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Is a statistical method

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Involves plotting data points on a graph

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Results in the best-fitting line through a set of data points

Select the appropriate classification of each of the items listed below. -99%

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Allows a cost analyst to inspect the data visually

Select the appropriate classification of each of the items listed below. -Cost = intercept + X variable 1 × driver

Match each following terms with their correct description from the items listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -May reveal the presence of outliers

Select the appropriate classification of each of the items listed below. -$9097.80

Select the appropriate classification of each of the items listed below. -$6.53 × independent variable