a.
total revenue - total fixed costs.
b.
total revenue - total manufacturing costs.
c.
total revenue - total variable costs.
d.
the amount given to the College's annual fund raising effort.
7. Apply the high-low method to estimate a cost function given the following facts:
Units manufactured activity level 100; related total cost of $300
Units manufactured activity level 150; related total cost of $340
Units manufactured activity level 200; related total cost of $400
Your cost function should estimate the fixed costs and the variable cost per units
manufactured.
a.
8. Three criteria to use in identifying cost drivers from the potentially large set of inc
variables that can be included in a regression model or other methods to predict co
goodness of fit, where the line interseets, and specification analysis.
inexpensiveness to derive the data, economic plausibility, and specification an
economic plausibility (causality), goodness of fit, and the significance.
Lucky correlation, expense of gathering data, and time.
b.
c.
d.
9. A company that manufactures special order front doors inlaid with colored glass f
builders would use
process costing.
a.
b.
personal costing.
c.
operations costing.
d.
job costing.
