Question

5. A controller in a company wants to estimate the cost behaviour of customer service costs. Which of the following is an application of managerial judgement in determining cost behaviour? A. The accountant performs a scattergraph analysis and deletes several data points determined to be outliers. B. The accountant decides to use the last three years' data, but excluding the period when there, was a workers' labour strike which resulted in reduced productivity C. The accountant runs a regression using direct labour hours as the independent variable, However, she/he adjusts the x coefficient variable upwards by 5 percent to reflect anticipated labour cost increases for the coming year. D. The account decides to try multiple regression since the coefficient of determination on a simple regression equation is 0.49. E. All of the above.

Answer 1

Answer:

E. All of the above

Explanation:

The effect of changes in organisational activities on the cost associated with them, determines the cost behavior.

Cost behavior is also determined by the manager to analyze the changes in cost due to changes in the output level within the organisation.

In the above given question;

All of the given options are related to the changes in organisational activities. Thus, the answer is (e. all of the above) which states that all the given options can be applied to determine the cost behavior.