Questions from Managerial Accounting

Q: Managers often assume a strictly linear relationship between cost and volume.

Managers often assume a strictly linear relationship between cost and volume. How can this practice be defended in light of the fact that many costs are curvilinear?

Q: John Olsen operates a stamping machine on the assembly line of Drake

John Olsen operates a stamping machine on the assembly line of Drake Manufacturing Company. Last week Mr. Olsen worked 45 hours. His basic wage rate is $14 per hour, with time and a half for overtime...

Q: Classify the following fixed costs as normally being either committed or discretionary

Classify the following fixed costs as normally being either committed or discretionary: a. Depreciation on buildings. b. Advertising. c. Research. d. Long-term equipment leases. e. Pension payments to...

Q: Does the concept of the relevant range apply to fixed costs?

Does the concept of the relevant range apply to fixed costs? Explain.

Q: What is the major disadvantage of the high-low method?

What is the major disadvantage of the high-low method?

Q: Give the general formula for a mixed cost. Which term represents

Give the general formula for a mixed cost. Which term represents the variable cost? The fixed cost?

Q: What is meant by the term least-squares regression?

What is meant by the term least-squares regression?

Q: What is the difference between ordinary least-squares regression analysis and

What is the difference between ordinary least-squares regression analysis and multiple regression analysis?

Q: What is the contribution margin?

What is the contribution margin?

Q: What is meant by the term operating leverage?

What is meant by the term operating leverage?