26) The fixed costs required to achieve a desired level of production or to provide a desired level of service, while maintaining product or service attributes such as quality, are referred to as

A) committed costs.

B) mixed costs.

C) capacity costs.

D) engineered costs.

27) A property tax is an example of a

A) mixed cost.

B) committed fixed cost.

C) discretionary cost.

D) engineered cost.

28) Costs determined by management as part of the periodic planning process in order to meet the organization’s goals are

A) discretionary fixed costs.

B) engineered costs.

C) mixed costs.

D) step costs.

29) Advertising cost is an example of a

A) committed fixed cost.

B) discretionary fixed cost.

C) mixed cost.

D) engineered cost.

30) Research and development costs are an example of

A) engineered costs.

B) mixed costs.

C) committed fixed costs.

D) discretionary fixed costs.

31) Costs that may be essential to the long run achievement of the organization’s goals, but that managers can almost reduce to zero in the short run, are called

A) engineered costs.

B) mixed costs.

C) committed fixed costs.

D) discretionary fixed costs.

32) A cost function

A) need not have a cause-and-effect relationship.

B) should include only personal observations of costs and activities.

C) does not explain past cost behaviour.

D) should be a reliable predictor of future costs.

33) The first step in estimating or predicting costs is

A) planning.

B) control.

C) cost measurement.

D) mixing costs.

34) An algebraic equation used by managers to describe the relationship between a cost and its cost driver(s) is called a

A) cost behaviour.

B) cost function.

C) budget.

D) cost analysis.

35) ________ is the first step in estimating or predicting costs as a function of appropriate cost drivers.

A) Cost measurement

B) Cost determination

C) Cost behaviour

D



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *