Question Details

How many separate cost pools should be formed



1) The cost to be predicted is referred to as the ________.
A) independent variable 
B) dependent variable 
C) cost driver 
D) regression 

2) In the estimation of a cost function using quantitative analysis, the independent variable ________. 
A) is the cost to be predicted
B) is the product of fixed costs and slope coefficient
C) is the factor used to predict the dependent variable
D) is the product of total costs and slope coefficient 

3) How many separate cost pools should be formed given the following information?

	Cost	Cost driver
	Postage costs	# of brochures mailed
	Printing and paper costs	# of brochures mailed
	Quality control costs	# of inspections
	Customer service costs	# of customers served 

A) 1 cost pool 
B) 2 cost pools 
C) 3 cost pools 
D) 4 cost pools 


4) Place the following steps in order for estimating a cost function using quantitative analysis.

	A = Plot the data
	B = Collect data on the dependent variable and the cost driver.
	C = Choose the dependent variable
	D = Identify the independent variable, or cost driver 
	E = Estimate the cost function 

A) D C E A B 
B) C D B A E 
C) A D C E B 
D) E D C B A 


5) All individual cost items included in the dependent variable should have ________.
A) a different cost driver 
B) an independent relationship with the independent variable 
C) an economically plausible relationship with the cost driver
D) a heterogeneous cost pool 





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