Multiple Choice 3-1
A factor that causes or leads to a change in a cost or activity is a(n)
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifa. slope.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifb. intercept.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifc. driver.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifd. variable term.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gife. cost object.
2.
Multiple Choice 3-4
The following cost formula was developed by using monthly data for a hospital.
Total Cost = $128,000,000 + ($12,000 x Number of Patient Days)
In the cost formula, the term $128,000,000
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifa. is the total variable cost.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifb. is the dependent variable.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifc. is the variable rate.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifd. is the total fixed cost.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gife. cannot be determined from the above formula.
3.
Multiple Choice 3-5
The following cost formula was developed by using monthly data for a hospital.
Total Cost = $128,000,000 + ($12,000 x Number of Patient Days)
In the cost formula, the term $12,000
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifa. is the variable rate.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifb. is the dependent variable.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifc. is the independent variable.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifd. is the intercept.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gife. cannot be determined from the above formula.
4.
Multiple Choice 3-6
The following cost formula was developed by using monthly data for a hospital.
Total Cost = $128,000,000 + ($12,000 x Number of Patient Days)
In the cost formula, the term "Number of patient days"
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifa. is the variable rate.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifb. is the intercept.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifc. is the dependent variable.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifd. is the independent variable.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gife. cannot be determined from the above formula.
5.
Multiple Choice 3-7
The following cost formula was developed by using monthly data for a hospital.
Total Cost = $128,000,000 + ($12,000 x Number of Patient Days)
In the cost formula, the term "Total cost"
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifa. is the variable rate.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifb. is the intercept.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifc. is the dependent variable.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gifd. is the independent variable.
http://sjc.cengagenow.com/media/img/MC_circle16x16_cut.gife. cannot be determined from the above formula.
6.
Multiple Choice 3-8
The following cost formula for total purchasing cost in a factory was developed using monthly data.
Total Cost = $235,000 + ($75 x Number of Purchase Orders)
Next month, 8,000 purchase orders are predicted. The total cost predicted fo