Questions from Cost Accounting

Q: “High correlation between two variables means that one is the cause

“High correlation between two variables means that one is the cause and the other is the effect.” Do you agree? Explain.

Q: Describe the conference method for estimating a cost function. What are

Describe the conference method for estimating a cost function. What are two advantages of this method?

Q: List the six steps in estimating a cost function on the basis

List the six steps in estimating a cost function on the basis of an analysis of a past cost relationship. Which step is typically the most difficult for the cost analyst?

Q: Outline the five-step sequence in a decision process.

Outline the five-step sequence in a decision process.

Q: Sander Company produces mathematical and financial calculators and operates at capacity.

Sander Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here: Total manufacturing overhead costs are as follows: Total...

Q: Define relevant costs. Why are historical costs irrelevant?

Define relevant costs. Why are historical costs irrelevant?

Q: “All future costs are relevant.” Do you agree? Why

“All future costs are relevant.” Do you agree? Why?

Q: What is a customer preference map, and why is it useful

What is a customer preference map, and why is it useful?

Q: What is reengineering?

What is reengineering?

Q: “Variable costs are always relevant, and fixed costs are always

“Variable costs are always relevant, and fixed costs are always irrelevant.” Do you agree? Why?