Questions from Cost Accounting

Q: All independent variables in a cost function estimated with regression analysis are

All independent variables in a cost function estimated with regression analysis are cost drivers.” Do you agree?

Q: What is the goal of an ordinary least squares (OLS)

What is the goal of an ordinary least squares (OLS) linear regression?

Q: Define opportunity cost .

Define opportunity cost .

Q: All future costs are relevant.” Do you agree? Explain briefly

All future costs are relevant.” Do you agree? Explain briefly.

Q: Give two examples of pricing decisions with a short-run focus

Give two examples of pricing decisions with a short-run focus.

Q: It is not important for a firm to distinguish between cost incurrence

It is not important for a firm to distinguish between cost incurrence and locked-in costs.” Do you agree? Explain.

Q: Describe three alternative cost-plus methods.

Describe three alternative cost-plus methods.

Q: Assume variable manufacturing overhead is allocated using machine-hours. Give

Assume variable manufacturing overhead is allocated using machine-hours. Give three possible reasons for a $30,000 favourable variable overhead efficiency variance.

Q: Halsey Company sells women’s clothing. Halsey’s strategy is to offer a

Halsey Company sells women’s clothing. Halsey’s strategy is to offer a wide selection of clothes and excellent customer service and to charge a premium price. Halse...

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

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