In a labor intensive company in which more OH is used by more highly skilled and paid ees, which activity base would be most appropriate for applying OH to production?
A DL$
B DM$
C DLH
D MH
E Sales value of the product produced
Answer: A
Which of the following is NOT a data problem an analyst must watch for when estimating cost behavior?
A missing data
B Outliers
C Allocated Costs
D Depreciable Assets
Answer: D
Which of the following is the difference between variable costs and fixed costs?
A variable costs per unity fluctuate and fixed CPU remain constant
B variable CPU are fixed over the relevant range and fixed CPU are variable
C Total variable costs are variable over the relevant range and fixed in the long term, while fixed costs never change
D Variable CPU change in varying increments, while fixed CPU change in equal units
E total variable costs can be varied by mgmt, while fixed costs are uncontrollable
Answer: B
