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MCQs on regression, budgeting, Accounting

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Business / Managerial Accounting - Please select ONLY: a,b,c, or d.
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* What is the purpose of regression analysis?

a. To measure the extent to which changes in one variable are associated with changes in another variable
b. To calculate the coefficient of determination
c. To provide a visual analysis of a graphical representation of the relationship between two variables
d. To determine the best-fitting line among a set of data points

* In the linear equation Y = a + bX, what variable is represented by X?

a. Total variable cost
b. Level of activity
c. Unit variable cost
d. Total cost

* The following excerpts from four regression analysis reports describe the relationship between a major operating cost and four cost drivers for Tory Corp:

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Regression Statistics Regression Statistics
R.Sq 0.228 R.Sq 0.337
Std. Error 36.627 Std. Error 25.519
Observations 12 Observations 12

Coefficients Coefficients
Intercept 1537.416 Intercept 1926.908
Labor Hrs. 80.576 Machine Hrs 69.123

Regression Statistics Regression Statistics
R.Sq 0.665 R.Sq 0.774
Std. Error 42.407 Std.Error 30.353
Observations 12 Observations 12

Coefficients Coefficients
Intercept 1323.323 Intercept 1700.657
Labor Hrs. 46.822 Cust.Visits 23.409

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Which cost driver is the best predictor of the operating cost?

a. Kilowatt hours
b. Labor hours
c. Machine hours
d. Customer visits

* When the Parcel Express Office ships 4,000 packages in one day, the daily shipping cost total $2,760. If fixed costs total $2,400,

what is the total amount of expected shipping cost when 8,000 packages are shipped?

a. $3,120
b. $3,200
c. $4,800
d. $5,520

* The following excerpt from a regression analysis report describes the relationship between a production cost for Myers Industries,

Inc. and labor hours:
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Regression Statistics

R.Sq. 0.228
Std.Error 36.627
Observations 12

Coefficients
Intercept 17,537.116
Labor Hrs 80.576
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To the nearest dollar, what are total expected fixed production costs if the level of activity is 1,000 labor hours?

a. $175,370
b. $ 80,576
c. $ 36,627
d. $ 17,537

* Which budget schedule summarizes the financial effects arising from operating, investing, and financing activities during an operating period?

a. Capital use budget
b. Cash flow budget
c. Operating budget
d. Financial statement budget

* Which of the following is considered the cornerstone of the budgeting process, the foundation upon which all other budgets depend?

a. Capital use budget
b. Cash flow budget
c. Pro forma financial statements
d. Sales budget

Solution Summary

This posting contains an answer to the following MCQs on Managerial accounting

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