Exam 2 Review

Front

The contribution margin ratio is...

Back

contribution margin divided by sales revenue

Front

Which is true of price-setters? Options: Their pricing approach emphasizes target costing, Their pricing approach emphasizes cost-plus pricing, They are in highly competitive markets, Their products lack uniqueness

Back

Their pricing approach emphasizes cost-plus pricing

Front

In the cost equation y = vx + f the term "v" stands for...

Back

variable cost per unit

Front

Which of the following is true about regression analysis? It is based on two data points, The resulting S-squared statistic shows how well the line fits the data points, It is theoretically less sound than the high-low method, It is sometimes referred to as the line of best fit

Back

It is sometimes referred to as the line of best fit

Front

A company with a low operating leverage

Back

has relatively more variable costs than fixed costs.

Front

Use the high-low method to determine the variable and fixed cost components of Swift Change's operating costs. Project the monthly operating costs for a month in which the company performs 3,900 oil changes.

Back

38,000

Answer explanation

Front

A legal firm wanted to determine the relationship between its monthly operating costs and a potential cost driver, professional hours. Given the output of a regression analysis, write the legal firm's monthly cost equation.

Back

y=.27x+947.20

Answer explanation