Burmer Co Has Accumulated Data to Use in Preparing Its Annual

question 55

Multiple Choice

Burmer Co. has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be determined. Data regarding the machine hours and maintenance costs for the last year and the results of the regression analysis are as follows:REGRESSION ANALYSIS
Y (Dependent) Variable: Maintenance Cost
X (Independent) Variable: Maintenance Hours
The statistic that indicates precision of the regression is:

• A) 9982.
• B) 47.0630.
• C) 0.9981.
• D) Lower 95% and Upper 95%.
• E) Significance F (1.44E-13).

Grasp the concept of joint costs and the methods for their allocation.

Understand the role and structure of a responsibility accounting performance report in comparing actual to budgeted costs.

Identify the characteristics of a service department within an organization.

Familiarize with the evaluation measures for investment center managers, including investment turnover and profit margin.

---

Definitions:

Price Elastic

Refers to the degree to which the quantity demanded or supplied of a good or service changes in response to a change in its price.

Necessities

Basic needs essential for maintaining life, such as food, water, shelter, and clothing, which take precedence over other types of spending.

Elasticity Coefficient

A measure used to show the responsiveness of the quantity demanded or supplied to a change in one of its determinants, like price or income.

Supply

A schedule or curve that shows the various amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specified period of time.