5.3 Smartbook

The slope of the regression line represents the Blank______ cost per unit of activity. Multiple choice question. variable total fixed

variable

When using the high-low method, the slope of the line equals the _________ cost per unit of activity.

variable

When using the high low method, the change in cost divided by the change in units equals Blank______. Multiple choice question. fixed cost per unit variable cost per unit total cost total fixed cost total variable cost

variable cost per unit

Cost behavior is considered linear whenever Blank______. Multiple choice question. a straight line approximates the relationship between cost and activity the difference between cost and activity is zero a straight line approximates the difference between cost and activity the relationship between cost and activity cannot be represented by a line

a straight line approximates the relationship between cost and activity

To analyze mixed costs with the high-low method, begin by identifying the periods with the lowest and highest level of Blank______. Multiple choice question. cost activity both activity and cost

activity

To analyze mixed costs with the high-low method, begin by identifying the period with the lowest level of Blank______. Multiple choice question. cost and its related activity cost and the period with the lowest cost activity and its related cost

activity and its related cost

The variable cost per unit using the high-low method is calculated as Blank______. Multiple choice question. total cost - total fixed cost change in cost ÷ change in units (activity) y = a + bX change in units (activity) ÷ change in costs

change in cost / change in units (activity)

When a company produces and sells multiple products Blank______. Multiple select question. each product most likely has a unique contribution margin each product most likely has different costs a change in the sales mix will most likely change the break-even point the sales mix has no effect on the company's profit

each product most likely has a unique contribution margin each product most likely has different costs a change in the sales mix will most likely change the break even point

Estimating the fixed and variable components of a mixed cost using the ________ approach involves a detailed analysis of what cost behavior should be.

engineering

Account analysis involves a detailed analysis of what cost behavior should be, based on an industrial engineer's evaluation. True False

false

In a least-squares regression line, the vertical intercept (a) of the line represents the total _______cost.

fixed

The best fitting line minimizes the sum of the squared errors when using Blank______. Multiple choice question. scattergraph analysis the high-low method least-square regression

least square regression

A method that uses all the available data points to divide a mixed cost into its fixed and variable components is called Blank______. Multiple choice question. the contribution approach least-squares regression the engineering approach high-low

least squares regression

It makes sense to perform a high-low or regression analysis if a scattergraph plot reveals _________ _________ behavior.

linear cost

The relative proportions in which a company's products are sold is referred to as _______ ________.

sales mix

The term used for the relative proportion in which a company's products are sold is Blank______. Multiple choice question. operating leverage sales mix sales price break-even

sales mix

The break-even point calculation is affected by Blank______. Multiple select question. costs per unit sales mix selling price per unit number of batches produced

sales mix costs per unit selling price per unit

The rise-over-run formula for the slope of a straight line is the basis of Blank______. Multiple choice question. least squares regression a scattergraph the high-low method

the high low method