Question

1. Mixed cost behavior pattern is unrelated to unit activity level.

   True

   False

1. The Enterprise Resource Planning (ERP) systems integrate traditional accounting information with nonfinancial information; they also provide a comprehensive view of the organization; further, these systems evolved to address the short-comings of the traditional accounting systems.

   True

   False

1. Managers should look to find a "cause-and-effect" relationship between overhead costs and related cost driver.

   True

   False

1. A framework for decision making include: (1) Defining the Problem (2) Identifying Objectives (3) Identifying and Analyzing Options (4) Considering Ethical Ramifications (5) Selecting the Best Option.

   True

   False

The wheels on an automobile are classified as a variable cost with respect to the volume of cars produced in an automobile assembly plant.

1. True

   False

1. The primary advantage of the high-low method of cost estimation over the least-squares regression method is its Limited data requirements

   True

   False

Answer 1