Loading... Please wait...

- Home
- Solution Library
- Accounting
- 24. A cost function is an algebraic equation used to describ

24. A cost function is an algebraic equation used to describe the relationship between a cost and its cost driver(s).

25. In the mixed cost equation, Y = F + VX, the F is the slope.

26. In the mixed cost equation, Y = F + VX, the Y is the predicted total cost.

27. In the mixed cost equation, Y = F + VX, the X is the cost driver.

28. In the mixed cost equation, Y = F + VX, the X is the slope.

29. Managers should apply plausibility and reliability to obtain accurate and useful cost functions.

30. Pertaining to a useful cost function, plausibility means whether you can rely upon the cost function.

31. Goodness of fit pertains to how well a cost function predicts cost behavior.

32. Pertaining to a useful cost function, plausibility refers to a cause-and-effect relationship.

33. Activity analysis is used to identify appropriate cost drivers and their effects on the costs of making a product or providing a service.

34. A final product or service has only one cost driver.

35. In the equation, Y = $30,000 + $9X, the $30,000 represents fixed costs per unit.

36. The various methods used to measure cost behavior (e.g., account analysis, high-low) are mutually exclusive.

37. Variable cost per unit is the slope of a total cost line.

38. Identifying the appropriate cost driver(s) is the most critical aspect of any method for measuring cost behavior.

39. Account analysis is one method of approximating cost functions.

Expert's Answer

Download Solution:

This solution includes:

- Plain text
- Cited sources when necessary
- Attached file(s)
- Solution Document(s)

- Company
- About Us
- Blog
- Press
- Careers
- Contact Us

Subjects

Accounting | Anatomy | Anthropology | Art and Architecture | Astronomy | Auditing | Biochemistry | Biology | Business Law | Business Management | Business Studies | Chemistry | Economics | English | Earth Science | Computer Science | Essay Writing | Finance | Gender Studies | Hospitality Management | HR Management | Humanities | Law | Management | Marketing | Math | Mathematics | Mechanical Engineering | Medical Science | Nursing | Operations Management | Other Engineering | Other Subjects | Philosophy | Physics | Physiology | Political science | Psychology | Sociology | Statistics | Taxation | Web Development | Writing Assignments