Acc 350 Week 11 Final Exam - All Possible Questions

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ACC 350 WEEK 11 Final Exam - All Possible Questions
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ACC 350 WK 11 Final Exam - All Possible Questions

1)

One assumption frequently made in cost behavior estimation is that changes in total costs can be explained by changes in the level of a single activity.


2)

A cost function is a mathematical description of how a cost changes with changes in the level of an activity relating to that cost.


3)

All cost functions are linear.


4)

When plotted on a graph, cost functions are usually displayed by having the level of activity (machine hours, etc.) plotted on the vertical axis (called the y-axis ) and the amount of total costs corresponding to (or dependent on) the levels of that activity on the horizontal axis (called the x-axis).


5)

When estimating a cost function, cost behavior can be approximated by a linear cost function within the relevant range.


6)

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ACC 350 WEEK 11 Final Exam - All Possible Questions

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7)

A linear cost function can only represent fixed cost behavior.


8)

In a graphical display of a cost function, the steepness of the slope represents the total amount of fixed costs.


9)

The longer the time horizon, the more likely that a cost will have a fixed cost behavior.


10)

Outside of the relevant range, variable and fixed cost

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ACC 350 WEEK 11 Final Exam - All Possible Questions

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11)

Any linear cost function can be graphed by knowing only the slope coefficient.


12)

Knowing the proper relevant range is essential to properly classify costs.


13)

It can be inferred that when there is a high correlation between two variables, one is the cause of the other.

14)

An example of a physical cause-and-effect relationship is when additional units of production increase total direct material costs.