Question 1

In the equation: y = vx + f,what term represents the variable cost per unit of activity? (Assume x represents the volume of activity. )
A)f
B)v
C)y
D)vx

Accepted Answer

The variable cost per unit of activity is represented by the variable "v" in the equation. It is the coefficient of the x variable, which represents the volume of activity. Therefore, the correct answer is B.

Question 2

In the equation: y = vx + f,what term represents the total cost?
A)f
B)v
C)y
D)vx

Accepted Answer

In the equation y = vx + f, y represents the total cost, where vx is the variable cost (v times the number of units x) and f is the fixed cost.

Question 3

In the equation y = $9.90x + $120,014,"x" represents
A)total fixed costs.
B)number of units produced.
C)total overhead costs.
D)total variable costs.

Accepted Answer

The equation y = $9.90x + $120,014 represents a linear equation for a company's total cost, where "x" represents the number of units produced and "y" represents the total cost. The coefficient "$9.90" represents the variable cost per unit, and "$120,014" represents the total fixed costs. Therefore, "x" represents the number of units produced.

Question 4

In the equation y = $9.90x + $120,014
A)$120,014 are the total variable costs.
B)$120,014 are the total fixed costs.
C)$120,014 are the total costs.
D)$120,014 are the total overhead costs.

Accepted Answer

In the equation y = $9.90x + $120,014, $120,014 represents the intercept or the fixed cost. Therefore, choice B is correct as it states that $120,014 are the total fixed costs.

Question 5

Which of the following equations represents the total mixed cost?
A)y = vx + f
B)y = vx
C)y = f
D)y = v + f

Accepted Answer

Total mixed cost includes both variable and fixed costs, so the equation must have both variables (v) and constants (f). Option A has both variables in the equation.

Question 6

In the equation: y = vx + f,what term represents the total variable cost component?
A)f
B)v
C)y
D)vx

Accepted Answer

In the equation y = vx + f, vx represents the total variable cost component. The variable v stands for the variable cost per unit, and x represents the number of units. Multiplying these together gives the total variable cost.

Question 7

When predicting costs at different volumes,managers should consider which of the following?
A)The relevant range of the cost
B)The type of cost behaviour
C)Neither of the above
D)Both of the above

Accepted Answer

Managers should consider both the relevant range of the cost and the type of cost behavior when predicting costs at different volumes. The relevant range of the cost refers to the range of activity levels over which the cost is expected to be incurred, while the type of cost behavior refers to how the cost changes in response to changes in activity levels. Both factors are crucial for accurate cost prediction and decision-making.

Question 8

An equation of a line for total mixed costs is
A)y = vx - f
B)y = vx + f
C)f = vx -y
D)f = vx + y

Accepted Answer

The equation of a line for total mixed costs is y = vx + f, where y represents total cost, v represents variable cost per unit, x represents the level of activity or units produced, and f represents total fixed costs. The slope of the line is v and the y-intercept is f. Therefore, choice B is the correct answer.

Question 9

In the equation y = $9.90x + $120,014,"y" represents
A)total fixed costs.
B)variable costs/unit.
C)total overhead costs.
D)total variable costs.

Accepted Answer

In the equation y = $9.90x + $120,014, "y" represents total overhead costs, as it includes both a variable component ($9.90x) and a fixed component ($120,014).

Question 10

In the equation: y = vx + f,what term represents the fixed cost component?
A)f
B)v
C)y
D)vx

Accepted Answer

The term f represents the fixed cost component. This is because it is a constant value that does not change based on the value of x or v. In other words, even if there is no output (x=0 or v=0), the fixed cost still exists.

Question 11

YouCall offers a calling plan that charges $2.00 per month plus $0.05 per minute of call time.Under this plan,what is your monthly cost if you talk for a total of 100 minutes?
A)$7.00
B)$5.00
C)$3.00
D)$2.00

Accepted Answer

The monthly cost is calculated as the base fee ($2.00) plus the cost of the minutes used (100 minutes * $0.05/minute = $5.00), totaling $7.00.

Question 12

The representation for fixed cost per unit of activity is
A)vx divided by v
B)vx divided by y
C)f divided by x
D)y divided by x

Accepted Answer

The formula for fixed cost per unit of activity is total fixed cost divided by the number of units produced. Therefore, the correct formula is f divided by x. Options A and B incorporate a variable cost component (vx), which is incorrect for fixed cost per unit of activity. Option D includes a variable (y) in the numerator, which is also incorrect.

Question 13

The equation for total fixed costs is
A)y = vx - f
B)y = vx + f
C)y = f
D)f = vx + y

Accepted Answer

Total fixed costs only depend on the fixed amount, f, and do not change based on the level of activity, represented by v and x. Therefore, the equation y = f represents total fixed costs accurately.

Question 14

In the equation: y = vx + f,what variable represents the volume of activity? (Assume v represents the variable cost per unit of activity. )
A)x
B)v
C)y
D)vx

Accepted Answer

The variable x represents the volume of activity in the equation. This is because v is the variable cost per unit, and when it is multiplied by x (the volume of activity), it gives the total variable cost, which is part of the equation for y.

Question 15

BestCalls has a special plan offer this month.There is a $4.00 per month charge each month and calls anywhere in the United States are $0.03 per minute.What would the monthly cost be if you typically talk for 500 minutes per month?
A)$11.00
B)$15.00
C)$19.00
D)$5.00

Accepted Answer

The monthly cost would be:
Fixed Charge = $4.00
Call charge = $0.03 x 500 = $15.00
Total monthly cost = $4.00 + $15.00 = $19.00
Therefore, the best choice is C.

Question 16

The following graph indicates which type of cost behaviour?

A)Fixed
B)Mixed
C)Step
D)Variable

Accepted Answer

The answer of The following graph indicates which type of...

Question 17

The following graphs indicate which type of cost behaviour?

A)Curvilinear
B)Fixed
C)Step
D)Variable

Accepted Answer

The answer of The following graphs indicate which type of...

Question 18

An equation of a line for all costs is
A)y = vx - f.
B)y = fx + v.
C)y = f.
D)y = vx + f

Accepted Answer

The equation of a line for all costs is typically in the form of y = mx + b, where m is the slope and b is the y-intercept. In this case, we can interpret the slope v as the cost per unit and f as the fixed cost, so the equation of the line would be y = vx + f. This matches option D, which is in the correct format for a line equation and has the variables in the correct order.

Question 19

If a company's overhead cost equation is y = $9.90x + $120,014.The "x" is
A)total overhead costs.
B)total fixed costs.
C)the cost driver in units.
D)the variable costs.

Accepted Answer

In this equation, "x" is the cost driver in units, which means it represents the activity level that drives the overhead costs. The constant term of $120,014 represents the total fixed costs, while the coefficient of $9.90 represents the variable cost per unit of activity. Therefore, the correct choice is (C) the cost driver in units.

Question 20

The representation for total variable costs is
A)vx
B)vx + f
C)vx - f
D)y = vx

Accepted Answer

The representation for total variable costs is typically represented as a function of activity level, denoted by "x," multiplied by the variable cost per unit, denoted by "v." Therefore, the correct representation for total variable costs is vx.

Quiz 6: Cost Behaviour

In the equation: y = vx + f,what term represents the variable cost per unit of activity? (Assume x represents the volume of activity. )

In the equation: y = vx + f,what term represents the total cost?

In the equation y = $9.90x + $120,014,"x" represents

In the equation y = $9.90x + $120,014

Which of the following equations represents the total mixed cost?

In the equation: y = vx + f,what term represents the total variable cost component?

When predicting costs at different volumes,managers should consider which of the following?

An equation of a line for total mixed costs is

In the equation y = $9.90x + $120,014,"y" represents

In the equation: y = vx + f,what term represents the fixed cost component?

YouCall offers a calling plan that charges $2.00 per month plus $0.05 per minute of call time.Under this plan,what is your monthly cost if you talk for a total of 100 minutes?

The representation for fixed cost per unit of activity is

The equation for total fixed costs is

In the equation: y = vx + f,what variable represents the volume of activity? (Assume v represents the variable cost per unit of activity. )

BestCalls has a special plan offer this month.There is a $4.00 per month charge each month and calls anywhere in the United States are $0.03 per minute.What would the monthly cost be if you typically talk for 500 minutes per month?

The following graph indicates which type of cost behaviour?

The following graphs indicate which type of cost behaviour?

An equation of a line for all costs is

If a company's overhead cost equation is y = $9.90x + $120,014.The "x" is

The representation for total variable costs is