Question

1. Knowledge about the behavior of different costs in a service department such as maintenance can be used to ________.
A) plan costs
B) provide feedback to managers
C) make decisions about the most efficient use of resources
D) all of the above

2. . In an economic downturn, a company could temporarily reduce or eliminate a(n) ________.
A) public relations department
B) property taxes on factory building
C) insurance on factory building
D) lease payments on computers in corporate headquarters

3. When examining the output from regression analysis, the goodness of fit measure is labeled ________ by most computer programs.
A) X coefficient
B) R2
C) constant
D) standard error of estimate

4. Which of these costs is a direct cost for a manufactured wood table?
A) Rent Expense for factory building
B) Wood used to manufacture table
C) Depreciation Expense on factory equipment
D) Salary Expense of factory supervisor

Answer 1

Solution 1:

Knowledge about the behavior of different costs in a service department such as maintenance can be used to:

A) plan costs
B) provide feedback to managers
C) make decisions about the most efficient use of resources

Hence option D all of the above is correct.

Solution 2:

In an economic downturn, a company could temporarily reduce or eliminate a "public relations department"

Hecne option A is correct.

Solution 3:

When examining the output from regression analysis, the goodness of fit measure is labeled "R2" by most computer programs.

Hence option B is correct

Solution 4:

Wood used to manufacture table is a direct cost for a manufactured wood table.

Hence option B is correct.