7) If a scatter plot reveals a fairly weak relationship between cost and volume, the cost equation based on that data should be very useful for predicting future costs.
8) If a scatter plot reveals a fairly weak relationship between cost and volume, the manager should select a different activity for modeling cost behavior.
9) Outliers are data points that do not fall in the same general pattern as the other data points.
10) Outliers are normal data points.
11) If a manager sees a potential outlier in the data, he or she should first determine whether the data is correct.
12) Using account analysis, what type of cost is the rental of a space at $2,000 per month?
A) Fixed
B) Mixed
C) Step
D) Variable
13) Using account analysis, what type of cost is utilities if you are charged $40 for the first 200 kilowatts hours, $85 for 201- 400 kilowatt hours, and $135 + or - for 401-600 kilowatt hours?
A) Fixed
B) Mixed
C) Step
D) Variable
14) Using account analysis, what type of cost is the local phone service which charges a flat fee for unlimited local calls?
A) Fixed
B) Mixed
C) Step
D) Variable
15) Using account analysis, what type of cost is the price of gasoline when your car gets 20 miles per gallon and each gallon costs $3.10?
A) Fixed
B) Mixed
C) Step
D) Variable
16) Using account analysis, what type of cost is Satellite TV when the charge is $30.00 per month plus $3.99 for pay-per-view movies?
A) Fixed
B) Mixed
C) Step
D) Variable