1) The ideal database contains: A) mumerous cost driver observations B) cost driver observations spanning a wide range reliably measured observations D) All of these answers are correct, 2) Managers who design data collection reports that regularly and routinely obtain required data are helping to ensure that: A) all data are recorded B) the relationship between the cost driver and the cost remains stable over time C) inflationary effects are removed D) extreme values are not used to calculate cost functions 3) All of the following are cost analysis problems EXCEPT. A) extreme observations are adjusted or removed B) time periods differ for measuring items included in the dependent variable and the cost driver(s) C) fixed costs are allocated as if they are variable costs D) homogeneous relationships between individual cost items in the dependent variable pool and cost drivers may not be present 4) The coefficient of determination is important in explaining variances in estimating equations. For a certain estimating equation, the unexplained variation was given as 26,505. The total variation was given as 46,500. What is the coefficient of determination for the equation? A) 0.57 B) 0.43 C) 0.66 D) 0.34 5) The cost to be predicted is referred to as the A) cost driver B) independent variable C) regression D) dependent variable 6) The independent variable: A) may also be called the cost-allocation base if referring to an indirect cost B) should have an economically plausible relationship with the dependent variable C) is also referred to as the cost driver D) All of these answers are correct 8) A plot of data that results in bunched points with little slope generally indicates: A) a weak relationship B) a positive relationship C) a strong relationship D) a negative relationship 9) Time-series data analysis includes: A) observing different entities during the same time period B) using a variety of time periods to measure the dependent variable C) using the highest and lowest observation D) comparing information in different cost pools 10) When using the high-low method, the two observations used are the high and low observations of the A) dependent variables B) residual term C) slope coefficient D) cost driver 11) When using the high-low method, the denominator of the equation that determines the slope is the A) difference between the high and low observations of the dependent variables B) difference between the high and low observations of the cost driver C) dependent variable D) independent variable 12) The high-low method: A) uses the residual term to measure goodness of fit B) easily handles estimating the relationship between the dependent variable and two or more independent variables C) calculates the slope coefficient using only two observed values within the relevant range D) is more accurate than the regression method 13) An inaccurate cost function with a slope coefficient that is estimated too low may most likely result in: A) predicting total costs that are too high B) promoting a product that is actually more profitable than budgeted C) evaluating a weak manager as having strong performance D) initiating cost cutting measures when they are unnecessary 14) A cost function with a lower constant than a year ago could indicate all of the following EXCEPT: A) a new operations manager is being effective B) the sales commission percentage has decreased C) insurance premiums have decreased D) last year's cost function was inaccurate 15) When using activity-based costing all of the following are true EXCEPT that: A) there are a great number and variety of cost drivers and cost pools B) all cost drivers should be output unit-level cost drivers C) industrial engineering, conference, and regression analysis can be used to estimate slope coefficients D) the more cost pools, the greater the chance of estimation error 16) When evaluating and choosing cost drivers all of the following are true EXCEPT: A) there is a goodness of fit between the various data points and the regression line B) there is a significance of effect of the independent variable C) the cost driver is economically plausible. D) there is an independent verification of the rel hip by a committee of cost accountants 17) The cause and effect relationship might arise as a result of which of the following: A) a contractual arrangement. B) a physical relationship between the level of activity and costs. C) knowledge of operations D) All of the above. English (United States) hp to 1 $ &