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To complete the first setup on a new machine 1) An experience curve ________. A) is a narrower application of the learning curve B) measures the decline in cost per unit as production decreases for various value-chain functions such as marketing as production increases C) only measures the decline in labor-hours per unit as units produced increases D) measures the increase in cost per unit as productivity increases 2) To compl ...

Other / Other 30 Mar 2016

The conference method and the account analysis method 1) Activity-based costing systems use the quantitative analysis method exclusively for cost estimation because of its accuracy. 2) The conference method and the account analysis method use subjective assessments to choose a cost driver and to estimate the fixed and variable components of the cost function. Business Management Assignment Help, Business Management Homewor ...

Other / Other 30 Mar 2016

What is the learning-curve percentage Harold's Picture manufactures various picture frames. Each new employee takes 6 hours to make the first picture frame and 4.8 hours to make the second. The manufacturing overhead charge per hour is $25. Required: a. What is the learning-curve percentage, assuming the cumulative average method? b. What is the time needed to build 8 picture frames by a new employee using the cumulative average-time ...

Other / Other 30 Mar 2016

Step fixed-cost functions are variable over the long run 1) An "economy of scale" function is an example of a linear cost function. 2) A step cost function is an example of a linear cost function. 3) Step fixed-cost functions are variable over the long run. 4) An experience curve is a function that measures the decline in cost per unit in various business functions of the value chain as the amount of these activities in ...

Other / Other 30 Mar 2016

An inaccurate cost function with a constant that is estimated 1) 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) initiating cost cutting measures when they are unnecessary C) evaluating a weak manager as having strong performance D) promoting a product that is actually more profitable than budgeted 2) An inaccurate c ...

Other / Other 30 Mar 2016

A learning curve is a function 1) Which of the following is a nonlinear cost function? A) increase in revenues with increase in sales in units B) total fixed cost of $25,000 C) variable cost of $5 per unit D) learning curve function 2) Which of the following is an example of nonlinear cost function? A) variable-cost functions B) fixed-cost functions C) learning curves D) mixed cost functions 3) With a step fixed-cost fun ...

Other / Other 30 Mar 2016

A steeply sloped regression line indicates 1) Goodness-of-fit measures how well the predicted values in a cost estimating equation ________. A) match the cost driver B) determine the level of activity C) match the actual cost observations D) rely on the independent variable 2) A steeply sloped regression line indicates ________. A) a strong relationship between the cost driver and costs B) a greater proportion of fixed cost ...

Other / Other 30 Mar 2016

The major advantages of quantitative methods 1) Machine-hours is a more economically plausible cost driver of machine maintenance than number of direct manufacturing labor-hours. 2) The larger the vertical difference between actual costs and predicted costs the better the goodness of fit. 3) The major advantages of quantitative methods are that they are objective, so managers can use them to evaluate different cost drivers. ...

Other / Other 30 Mar 2016

The cumulative average-time learning model 1) In the cumulative average-time learning model, cumulative average time per unit declines by a constant percentage each time the cumulative quantity of units produced doubles. 2) When new products are introduced, learning-curve effects can have a major influence on production scheduling. 3) It is appropriate to incorporate expected learning-curve efficiencies when evaluating performance ...

Other / Other 30 Mar 2016

What are the three criteria a company should use to evaluate What are the three criteria a company should use to evaluate and choose a cost driver? Briefly explain each of the three criteria. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help ...

Other / Other 30 Mar 2016