_____ In regression analysis, the variable that is being predicted is known as t
ID: 2591129 • Letter: #
Question
_____ In regression analysis, the variable that is being predicted is known as the:
A. independent variable.
B. dependent variable.
C. explanatory variable.
D. interdependent variable.
E. functional variable.
_____ Straight-line depreciation is a typical example of a:
A. variable cost.
B. step-variable cost.
C. fixed cost.
D. mixed cost.
E. curvilinear cost.
_____ Which of the following tools is not associated with cost estimation?
A. Least-squares regression.
B. Multiple regression.
C. Inversion equations.
D. Time and motion (engineering) studies.
E. Learning curves.
_____ Which of the following does not typically appear on an income statement prepared by using a traditional format?
A. Cost of goods sold.
B. Contribution margin.
C. Gross margin.
D. Selling expenses.
E. Administrative expenses.
_____ The unit contribution margin is calculated as the difference between:
A. selling price and fixed cost per unit.
B. selling price and variable cost per unit.
C. selling price and product cost per unit.
D. fixed cost per unit and variable cost per unit.
E. fixed cost per unit and product cost per unit.
_____ Which of the following would take place if a company experienced an increase in fixed costs?
A. Net income would increase.
B. The break-even point would increase.
C. The contribution margin would increase.
D. The contribution margin would decrease.
E. More than one of the above events would occur.
Explanation / Answer
1. Dependent Variable (B)- The outcome variable is also called the response or dependent variable, and the risk factors and confounders are called the predictors or independent variables. In regression analysis, the dependent variable is denoted "Y" and the independent variables are denoted by "X
2. Fixed Cost (C)- Staright line depriciation results into same cost in each period over the useful period of an asset. which results into fixed cost.
3. Inversion Equation (C)- all except inversion equation are associated with cost estimation.
4. Contribution margin (B)- this component is part of interal management accounting and not shown on the income statement.
5. Selling Price and Variable cost per Unit (B)- difference of these two components results into contribution per unit.
6. Break Even Point would increase (B)- any increase in fixed costs means the more number of selling units to cover the costs with same contribution margin (sales less variable cost). hence it would take more time to reach break even point.
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