CHAPTER 10: DETERMINING HOW COSTS BEHAV BEHAVE E TRUE/FALSE
1.
One assu assumpt mption ion freq frequent uently ly made made in cost cost behavi behavior or estim estimati ation on is that that change changess in total total costs can be explained by b y changes in the level of a single activity. Answer :
2.
True
Difficulty:
1
Objective:
1
All All cos costt fun funct ctiions ons are are linear near.. Answer : False Difficulty: 1 Objective: 1 All cost functions are not linear but for cost!behavior estimation "e assume some are "ithin a relevant range.
. #.
y $ a % b& repres represent entss the genera generall form form of the linear linear cost cost functi function. on. Answer :
'.
True
Difficulty:
1
Objective:
2
A linear linear cost cost funct function ion can only repres represent ent fixed fixed cost cost behavi behavior or.. Answer : False Difficulty: 1 Objective: 2 A linear cost function can represent fixed mixed or variable cost behavior.
(.
)n a graphi graphical cal disp display lay of a cost cost funct function ion the steepn steepness ess of of the slop slopee repres represent entss the tota totall amount of fixed costs. Answer : False Difficulty: 1 Objective: 2 )n a graphical display of a cost function the constant or the y!intercept represents the amount of fixed costs.
*.
The longe longerr the time time hori hori+on +on the more more li,e li,ely ly that that a cost cost "ill "ill have have a fixed fixed cost cost behavi behavior or.. Answer : False Difficulty: 2 Objective: The longer the time hori+on the more li,ely that a cost "ill be variable.
-.
Outsid Outsidee of the rele relevant vant range range variab variable le and and fixed fixed cost!b cost!beha ehavio viorr patter patterns ns may change. change. Answer :
.
2
True
Difficulty:
2
Objective:
2
Any line linear ar cost cost funct function ion can can be grap graphed hed by ,no ,no"in "ing g only the slop slopee coeff coeffici icient ent.. Answer : False Difficulty: 1 Objective: 2 A linear function can be graphed if the slope coefficient and the intercept are ,no"n.
/.
0no"in 0no"ing g the proper proper rele relevant vant range range is ess essent ential ial to to proper properly ly class classify ify costs. costs. Answer :
True
Difficulty:
1
Objective:
2
1.
)t can be be inferred inferred that that "hen there there is a high correla correlation tion bet"een bet"een t"o t"o variables variables one is the the cause of the other. Answer : False Difficulty: 2 Objective: 2 )t cannot be be inferred that a high correlation bet"een t"o variables indicates that one is the cause of the other. A high correlation simply indicates that tha t the variables move together.
11.
An example example of a physic physical al cause!and! cause!and!effe effect ct relation relationship ship is "hen additional additional units of of production increase total direct material costs. Answer :
12.
True
Difficulty:
2
Objective:
2
The industri industrial al engineerin engineering g method method of cost cost estimatio estimation n is based based on opinions opinions from from various various departments and is quic, and of lo" cost to apply. Answer : False Difficulty: 1 Objective: # The conference method of cost estimation is based on opinions from various departments and is quic, and of lo" cost to apply.
1#.
The account account analysis analysis method method of cost estima estimation tion classi classifies fies account account costs costs as fixed fixed mixed mixed or variable using qualitative 4udgments. Answer :
1'.
True
Difficulty:
1
Objective:
#
The industr industrial ial engineer engineering ing method method uses uses a formal formal mathemati mathematical cal method method to to identify identify cause!and!effect relationships among past data observations. Answer : False Difficulty: 1 Objective: # Quantitative analysis methods use a formal mathematical method to identify cause!and! effect relationships among past data observations.
1(.
)ndividual )ndividual cost cost items items included included in the the dependent dependent variabl variablee should should have have the same same cost cost driver or more than one cost function should be estimated. Answer :
1*.
True
Difficulty:
2
Objective:
'
An example example of time!s time!series eries data is to compile compile maintena maintenance nce costs costs of t"elve t"elve differ different ent manufacturing plants incurred during 2x#. Answer : False Difficulty: 1 Objective: ' An example of cross-sectional cross-sectional data is to compile maintenance costs of t"elve different manufacturing plants incurred during 2x#.
1-.
5vidence 5vidence of relati relationship onshipss and extreme extreme observation observationss are highlighted highlighted "hen costs costs and their cost drivers are plotted graphically. Answer :
True
Difficulty:
2
Objective:
'
1.
)t can be be inferred inferred that that "hen there there is a high correla correlation tion bet"een bet"een t"o t"o variables variables one is the the cause of the other. Answer : False Difficulty: 2 Objective: 2 )t cannot be be inferred that a high correlation bet"een t"o variables indicates that one is the cause of the other. A high correlation simply indicates that tha t the variables move together.
11.
An example example of a physic physical al cause!and! cause!and!effe effect ct relation relationship ship is "hen additional additional units of of production increase total direct material costs. Answer :
12.
True
Difficulty:
2
Objective:
2
The industri industrial al engineerin engineering g method method of cost cost estimatio estimation n is based based on opinions opinions from from various various departments and is quic, and of lo" cost to apply. Answer : False Difficulty: 1 Objective: # The conference method of cost estimation is based on opinions from various departments and is quic, and of lo" cost to apply.
1#.
The account account analysis analysis method method of cost estima estimation tion classi classifies fies account account costs costs as fixed fixed mixed mixed or variable using qualitative 4udgments. Answer :
1'.
True
Difficulty:
1
Objective:
#
The industr industrial ial engineer engineering ing method method uses uses a formal formal mathemati mathematical cal method method to to identify identify cause!and!effect relationships among past data observations. Answer : False Difficulty: 1 Objective: # Quantitative analysis methods use a formal mathematical method to identify cause!and! effect relationships among past data observations.
1(.
)ndividual )ndividual cost cost items items included included in the the dependent dependent variabl variablee should should have have the same same cost cost driver or more than one cost function should be estimated. Answer :
1*.
True
Difficulty:
2
Objective:
'
An example example of time!s time!series eries data is to compile compile maintena maintenance nce costs costs of t"elve t"elve differ different ent manufacturing plants incurred during 2x#. Answer : False Difficulty: 1 Objective: ' An example of cross-sectional cross-sectional data is to compile maintenance costs of t"elve different manufacturing plants incurred during 2x#.
1-.
5vidence 5vidence of relati relationship onshipss and extreme extreme observation observationss are highlighted highlighted "hen costs costs and their cost drivers are plotted graphically. Answer :
True
Difficulty:
2
Objective:
'
1.
The most most common common forms forms of quantita quantitative tive analys analysis is are are the confer conference ence method method and and the account analysis method. Answer : False Difficulty: 1 Objective: ' The most common forms of quantitative analysis are the high-low method and and regression analysis.
1/.
6egression 6egression analysi analysiss relies relies on only only t"o observa observations tions to to estimate estimate a linear linear cost cost function function.. Answer : False Difficulty: 1 Objective: ' relies on only t"o observations to estimate a linear cost function. The high-low method relies
2.
The y!interce y!intercept pt of a linear linear cost cost function function is an accurat accuratee cost assess assessment ment of of using using +ero machine!hours even if +ero machine!hours is outside of the relevant range. Answer : False Difficulty: 2 Objective: ' The y!intercept of a linear cost function is an accurate cost assessment of using +ero machine!hours only if +ero machine!hours are within the relevant range.
21.
A positi positive ve slope of a regression regression line line indicates indicates that that total costs costs are are lo"er for for higher higher values of the cost driver. Answer : False Difficulty: 2 Objective: ' A positive positive slope of a regression line indicates that costs are higher for for higher values of the cost driver.
22.
The high!lo" high!lo" method method is is more accurat accuratee than the the regressi regression on method method of estimat estimating ing a cost cost function. Answer : False Difficulty: 1 Objective: ' The regression method is more accurate than the high!lo" method since it uses all available data to estimate a cost function.
2#.
)f inaccura inaccurate te cost cost estimate estimatess are too high high then then a company company may may un,no"ingly un,no"ingly re"ard re"ard a manager for poor performance. Answer :
2'.
Difficulty:
#
Objective:
'
7achine!hour 7achine!hourss is a more economically economically plausible plausible cost cost driver driver of machine machine maintena maintenance nce than number of direct manufacturing labor!hours. Answer :
2(.
True
True
Difficulty:
2
Objective:
(
The smaller smaller the the vertical vertical differ difference ence bet"een bet"een actual actual costs costs and predicte predicted d costs costs the better better the goodness of fit. Answer :
True
Difficulty:
2
Objective:
(
2*.
hoosing an economically plausible cost driver for indirect costs is fairly simple and ,no"ledge of operations is unnecessary. Answer : False Difficulty: 2 Objective: ( Finding an economically plausible cost driver is not al"ays simple and many times ,no"ledge of operations is necessary.
2-.
A flat or slightly sloped regression line indicates a strong relationship. Answer : False Difficulty: # Objective: A flat or slightly sloped regression line indicates a weak relationship.
2.
8hen using an activity!based costing system a batch!level cost must have a batch!level cost driver. Answer :
2/.
Objective:
(
True
Difficulty:
1
Objective:
(
True
Difficulty:
1
Objective:
*
True
Difficulty:
2
Objective:
*
True
Difficulty:
2
Objective:
*
True
Difficulty:
1
Objective:
*
3lotting learning curve observations is helpful in selecting the appropriate learning curve model. Answer :
#(.
A learning curve measures the effect of learning on efficiency. Answer :
#'.
2
An example of a step variable!cost function is the cost of material!handling labor "hen inputs are acquired in discrete quantities. Answer :
##.
Difficulty:
9tep fixed!cost functions are variable over the long run. Answer :
#2.
A step cost function is an example of a nonlinear cost function. Answer :
#1.
True
5conomic plausibility is an important criterion for choosing a cost driver. Answer :
#.
(
True
Difficulty:
1
Objective:
-
8hen ne" products are introduced learning!curve effects can have a ma4or influence on production scheduling. Answer :
True
Difficulty:
2
Objective:
-
#*.
)t is appropriate to incorporate expected learning!curve efficiencies "hen evaluating performance. Answer :
#-.
True
Difficulty:
1
Objective:
-
True
Difficulty:
2
Objective:
-
True
Difficulty:
1
Objective:
7isinterpretation of data can arise "hen fixed costs are reported on a per unit basis. Answer :
'1.
?ata collection problems can arise "hen data is recorded manually rather than electronically. Answer :
'.
-
The incremental unit!time learning model "ith a / learning curve indicates that if it ta,es 1 minutes to manufacture the first unit of a ne" model then the second unit "ill ta,e only / minutes to manufacture. Answer :
#/.
Objective:
The cumulative average!time learning model "ith a / learning curve indicates that if it ta,es 1 minutes to manufacture the first unit of a ne" model then the second unit "ill ta,e only / minutes to manufacture. Answer : False Difficulty: # 1 x ./ $ /; <1 % &=>2 $ /; & $ minutes
#.
True
Difficulty:
2
Objective:
)nflation is a fact and therefore its influence should not be removed from the data. Answer : False Difficulty: 2 Objective: )nflation can distort data that are compared over time so purely inflationary effects should be removed.
'2.
The coefficient of determination
'#.
True
Difficulty:
1
Objective:
A
enerally a coefficient of determination
MULTIPLE CHOICE
''.
8hich of the follo"ing statements related to assumptions about estimating linear cost functions is FAB95C a. Dariations in a single cost driver explain variations in total costs. b. A cost ob4ect is anything for "hich a separate measurement of costs is desired. c. A linear function approximates cost behavior "ithin the relevant range of the cost driver. d. A high correlation bet"een t"o variables ensures that a cause!and!effect relationship exists. Answer :
'(.
2
Objective:
1
d
Difficulty:
2
Objective:
2
c
Difficulty:
#
Objective:
2
?ougherty ompany employs 2 individuals. 5ight employees are paid G12 per hour and the rest are salaried employees paid G# a month. Ho" "ould total costs of personnel be classifiedC a. Dariable b. 7ixed c. A variable cost "ithin a relevant range d. A fixed cost "ithin a relevant range Answer :
'.
Difficulty:
8hich of the follo"ing does EOT represent a cause!and!effect relationshipC a. 7aterial costs increase as the number of units produced increases. b. A company is charged ' cents for each brochure printed and mailed. c. tility costs increase at the same time that insurance costs increase. d. )t ma,es sense that if a complex product has a large number of parts it "ill ta,e longer to assemble than a simple product "ith fe"er parts. Answer :
'-.
A high correlation bet"een t"o variables s and t indicates that a. s may cause t! or t may cause s. b. they both may be affected by a third variable. c. the correlation may be due to random chance. d. all of the above are true. Answer :
'*.
d
b
Difficulty:
2
Objective:
2
For Ianuary the cost components of a picture frame include G.#( for the glass G.*( for the "ooden frame and G. for assembly. The assembly des, and tools cost G'. 1 frames are expected to be produced in the coming year. 8hat cost function best represents these costsC a. y $ 1. % '& b. y $ ' %1.& c. y $ 2.2 % 1& d. y $ 1. % '& Answer :
b
Difficulty:
2
Objective:
2
'/.
A linear cost function can represent a. mixed cost behaviors. b. fixed cost behaviors. c. variable cost behaviors. d. all of the above cost behaviors.
Answer :
(.
The a. b. c. d.
The a. b. c. d.
Objective:
2
c
Difficulty:
2
Objective:
2
a
Difficulty:
2
Objective:
2
c
Difficulty:
2
Objective:
2
The industrial engineering method estimates cost functions a. based on analysis and opinions gathered from various departments. b. quic,ly "hile incurring little cost. c. using qualitative rather than quantitative analysis. d. by analy+ing the relationship bet"een inputs and outputs in physical terms. Answer :
('.
2
8hich of the follo"ing is an equation of a variable cost functionC a. y $ b b. y $ a % b& c. y $ b& d. y $ a Answer :
(#.
Difficulty:
cost function y $ % '& represents a mixed cost. "ill intersect the y!axis at '. has a slope coefficient of . is a curved line.
Answer :
(2.
cost function y $ 1 % (& has a slope coefficient of 1. has an intercept of (. is a straight line. represents a fixed cost.
Answer :
(1.
d
d
Difficulty:
2
Objective:
#
The conference method estimates cost functions a. using quantitative methods that can be very time consuming and costly. b. based on analysis and opinions gathered from various departments. c. using time!and!motion studies. d. by mathematically analy+ing the relationship bet"een inputs and outputs in physical terms. Answer :
b
Difficulty:
2
Objective:
#
((.
The account analysis method estimates cost functions a. by classifying cost accounts as variable fixed or mixed based on qualitative analysis. b. using time!and!motion studies. c. at a high cost "hich is therefore seldom used. d. in a manner that cannot be usefully combined "ith any other cost estimation methods. Answer :
(*.
2
Objective:
#
c
Difficulty:
2
Objective:
#
b
Difficulty:
1
Objective:
#
8hich cost estimation method analy+es accounts in the subsidiary ledger as variable fixed or mixed using qualitative methodsC a. The account analysis method b. The conference method c. The industrial engineering method d. The quantitative analysis method Answer :
(/.
Difficulty:
athering cost information through observations and intervie"s from departments "ithin an organi+ation is ,no"n as a. the account analysis method. b. the conference method. c. the industrial engineering method. d. the quantitative analysis method. Answer :
(.
Juantitative analysis methods estimate cost functions a. "hich depend on the experience and 4udgment of the analyst for accuracy. b. based on analysis and opinions gathered from various departments. c. using significant amounts of historical data. d. using the pooling of ,no"ledge from each value chain function. Answer :
(-.
a
a
Difficulty:
1
Objective:
#
8hich cost estimation method uses a formal mathematical method to develop cost functions based on past dataC a. The account analysis method b. The conference method c. The industrial engineering method d. The quantitative analysis method Answer :
d
Difficulty:
1
Objective:
#
*.
8hich cost estimation method may utili+e time!and!motion studies to analy+e the relationship bet"een inputs and outputs in physical termsC a. The account analysis method b. The conference method c. The industrial engineering method d. The quantitative analysis method Answer :
c
Difficulty:
1
Objective:
#
TH5 FOBBO8)E )EFO67AT)OE A33B)59 TO J59T)OE9 *1 TH6OH *#. At the Iordan ompany the cost of the personnel department has al"ays been charged to production departments based upon number of employees. 6ecently opinions gathered from the department managers indicate that the number of ne" hires might be a better predictor of personnel costs. Total personnel department costs are G1*. Department Eumber of employees The number of ne" hires
*1.
A #
Objective:
#
)f number of ne" hires is considered the cost driver "hat amount of personnel costs "ill be allocated to ?epartment AC a. G12 b. G(### c. G(12 d. G2 Answer : c Difficulty: K > < % 12 % (=L x G1* $ G(12
*#.
C 1 (
)f number of employees is considered the cost driver "hat amount of personnel costs "ill be allocated to ?epartment AC a. G12 b. G(### c. G(12 d. G2 Answer : a Difficulty: 2 K# > <# % 2- % 1=L x G1* $ G12
*2.
B 2- 12
2
Objective:
#
8hich cost estimation method is being used by Iordan ompanyC a. The industrial engineering method b. The conference method c. The account analysis method d. The quantitative analysis method Answer :
b
Difficulty:
2
Objective:
#
TH5 FOBBO8)E )EFO67AT)OE A33B)59 TO J59T)OE9 *' TH6OH *-. 3ennyMs TD and Appliance 9tore is a small company that has hired you to perform some management advisory services. The follo"ing information pertains to 2x# operations. 9ales <2 televisions= ost of goods sold 9tore managerNs salary per year Operating costs per year Advertising and promotion per year ommissions <' of sales= *'.
8hat "as the variable cost per unit sold for 2x#C a. G1 b. G21 c. G##/ d. G2 Answer : b Difficulty: 2
2 $ G21 per unit
*(.
Objective:
#
Objective:
#
8hat are the estimated total costs if 3ennyMs expects to sell # units next yearC a. G/* b. G*- c. G11- d. G-// Answer : a Difficulty: G/* $ G2'2 % 21 <#=
*-.
8hat "ere total fixed costs for 2x#C a. G*- b. G'#* c. G2'2 d. G22- Answer : c Difficulty: 2 G- % G1(- % G1( $ G2'2
**.
G / ' - 1(- 1( #*
#
Objective:
#
8hich cost estimation method is being used by 3ennyMs TD and Appliance 9toreC a. The industrial engineering method b. The conference method c. The account analysis method d. The quantitative analysis method Answer :
c
Difficulty:
2
Objective:
#
*.
The cost to be predicted is referred to as the a. independent variable. b. dependent variable. c. cost driver. d. regression. Answer :
*/.
2
Objective:
'
d
Difficulty:
2
Objective:
'
1 cost pool 2 cost pools # cost pools ' cost pools
Answer :
c
Difficulty:
2
Objective:
'
3lace the follo"ing steps in order for estimating a cost function using quantitative analysis: A $ 3lot the data P $ 5stimate the cost function $ hoose the dependent variable ? $ )dentify the cost driver a. ? AP b. ? AP c. A?P d. ?PA Answer :
-2.
Difficulty:
Ho" many separate cost pools should be formed given the follo"ing information: Cost Cost dr!er 3ostage costs of brochures mailed 3rinting and paper costs of brochures mailed Juality control costs of inspections ustomer service costs of customers served a. b. c. d.
-1.
The independent variable a. is also referred to as the cost driver. b. may also be called the cost!allocation base if referring to an indirect cost. c. should have an economically plausible relationship "ith the dependent variable. d. includes all of the above. Answer :
-.
b
b
Difficulty:
2
Objective:
'
All individual cost items included in the dependent variable should a. have the same cost driver. b. have a cause!and!effect relationship "ith the independent variable. c. have an economically plausible relationship "ith the independent variable. d. include all of the above. Answer :
d
Difficulty:
2
Objective:
'
-#.
ollecting data on the dependent variable and the cost driver may include a. intervie"s "ith managers. b. collecting data over a long period of time. c. collecting data from different entities over the same period of time. d. all of the above. Answer :
-'.
Objective:
'
b
Difficulty:
#
Objective:
'
b
Difficulty:
2
Objective:
'
c
Difficulty:
2
Objective:
'
Time!series data analysis includes a. using a variety of time periods to measure the dependent variable. b. using the highest and lo"est observation. c. observing different entities during the same time period. d. comparing information in different cost pools. Answer :
-.
2
ross!sectional data analysis includes a. using a variety of time periods to measure the dependent variable. b. using the highest and lo"est observation. c. observing different entities during the same time period. d. comparing information in different cost pools. Answer :
--.
Difficulty:
A plot of data that results in one extreme observation 7O9T li,ely indicates that a. more than one cost pool should be used. b. an unusual event such as a plant shutdo"n occurred during that month. c. the cost!allocation base has been incorrectly identified. d. individual cost items do not have the same cost driver. Answer :
-*.
A plot of data that results in bunched points "ith little slope generally indicates a. a strong relationship. b. a "ea, relationship. c. a positive relationship. d. a negative relationship. Answer :
-(.
d
a
Difficulty:
2
Objective:
'
8hen using the high!lo" method the t"o observations used are the high and lo" observations a. of the cost driver. b. of the dependent variables. c. of the slope coefficient. b. of the residual term. Answer :
a
Difficulty:
2
Objective:
'
-/.
8hen using the high!lo" method the denominator of the equation that determines the slope is the a. dependent variable. b. independent variable. c. difference bet"een the high and lo" observations of the cost driver. d. difference bet"een the high and lo" observations of the dependent variables. Answer :
.
Difficulty:
2
Objective:
'
c
Difficulty:
#
Objective:
'
3ut the follo"ing steps in order for using the high!lo" method of estimating a cost function: A $ )dentify the cost function P $ alculate the constant $ alculate the slope coefficient ? $ )dentify the highest and lo"est observed values a. ? AP b. ? AP c. A?P d. ?PA Answer :
2.
The high!lo" method a. easily handles estimating the relationship bet"een the dependent variable and t"o or more independent variables. b. is more accurate than the regression method. c. calculates the slope coefficient using only t"o observed values "ithin the relevant range. d. uses the residual term to measure goodness of fit. Answer :
1.
c
d
Difficulty:
2
Objective:
'
6egression analysis a. is simple to compute. b. measures the change in a dependent variable associated "ith one or more independent variables. c. is mathematical so it does not require an understanding of operations. d. uses the constant to measure goodness of fit. Answer :
d
Difficulty:
#
Objective:
'
#.
9imple regression differs from multiple regression in that a. multiple regression uses all available data to estimate the cost function "hereas simple regression only uses simple data. b. simple regression is limited to the use of only the dependent variables and multiple regression can use both dependent and independent variables. c. simple regression uses only one independent variable and multiple regression uses more than one independent variable. d. simple regression uses only one dependent variable and multiple regression uses more than one dependent variable. Answer :
'.
c
Difficulty:
2
Objective:
'
Objective:
'
The slope of the line of regression is a. the rate at "hich the dependent variable varies. b. the rate at "hich the independent variable varies. c. the level of total fixed costs. d. the level of total variable costs. Answer :
a
Difficulty:
2
TH5 FOBBO8)E )EFO67AT)OE A33B)59 TO J59T)OE9 ( TH6OH -. The Hunter ompany uses the high!lo" method to estimate the cost function. The information for 2x# is provided belo": Ma"#ne$#o%rs &a'or Costs Highest observation of cost driver ' G1 Bo"est observation of cost driver 2' G * (.
8hat is the slope coefficient per machine!hourC a. G2.## b. G.( c. G2. d. G2(. Answer : c Difficulty: 2 9lope $ <' ! 2'= $ G2
*.
Objective:
'
Answer : a Difficulty: 2 Objective: 5)TH56: onstant $ G1 !
'
8hat is the constant for the estimating cost equationC a. G2 b. G* c. G d. G1
-.
8hat is the estimate of the total cost "hen # machine!hours are usedC a. G2 b. G' c. G* d. G Answer : d Difficulty: y $ G2 %
#
Objective:
'
TH5 FOBBO8)E )EFO67AT)OE A33B)59 TO J59T)OE9 TH6OH /. For arroll ompany labor!hours are 12( and "ages G'- at the high point of the relevant range and labor!hours are -( and "ages G#( at the lo" point of the relevant range. .
8hat is the slope coefficient per labor!hourC a. G'.* b. G#.-* c. G2.' d. G.'2 Answer : c Difficulty: 2 Objective: 9lope $ <12( Q -(= $ G2.' per labor!hour
/.
8hat is the constantC a. G1- b. G12 c. G( d. G'1-( Answer : a Difficulty: 2 onstant $ G'- !
/.
'
Objective:
'
8hat is the estimate of total labor costs at arroll ompany "hen 1 labor!hours are usedC a. G1- b. G'1 c. G211*d. G2- Answer : b Difficulty: y $ G1- %
#
Objective:
'
TH5 FOBBO8)E )EFO67AT)OE A33B)59 TO J59T)OE9 /1 AE? /2. The Parnett ompany has assembled the follo"ing data pertaining to certain costs that cannot be easily identified as either fixed or variable. Parnett ompany has heard about a method of measuring cost functions called the high!lo" method and has decided to use it in this situation. Cost Ho%rs G2'/ (2( 2' (( #*' -( ''1* /-( '( /( /1.
8hat is the cost functionC a. y $ G'#1/1 % G.1/& b. y $ G'-( % G(.2(& c. y $ G'1/ % G.2#& d. y $ G2'# % G'.2& Answer : d Difficulty: # Objective: '
/2.
8hat is the estimated total cost at an operating level of hoursC a. G'#-' b. G#**- c. G'*-( d. G#-12( Answer : b Difficulty: G#**- $ G2'# %
#
Objective:
'
TH5 FOBBO8)E )EFO67AT)OE A33B)59 TO J59T)OE9 /# AE? /'. 3resented belo" are the production data for the first six months of the year for the mixed costs incurred by allup ompany. Mont# Ianuary February 7arch April 7ay Iune
Cost G'/ '2' *' ' ( -##*
(nts '1 #2 (# -( ' **
allup ompany uses the high!lo" method to analy+e mixed costs. /#.
Ho" "ould the cost function be statedC a. y $ G'' % G1.12& b. y $ G#(*2.# % G.1''& c. y $ G1-.2 % G1.22'& d. y $ G-( % G.1#2& Answer : a Difficulty: # b $ <-( Q #2= $ G1.12 G' $ a % G1.12 <-(= a $ G''
/'.
Objective:
'
8hat is the estimated total cost at an operating level of ( unitsC a. G*22-.2 b. G*'. c. G'2#.2 d. G(1. Answer : b Difficulty: y $ G'' % G1.12 <(= $ G*'
#
Objective:
'
TH5 FOBBO8)E )EFO67AT)OE A33B)59 TO J59T)OE9 /( AE? /*. The ang"ere ompany has assembled the follo"ing data pertaining to certain costs that cannot be easily identified as either fixed or variable. ang"ere ompany has heard about a method of measuring cost functions called the high!lo" method and has decided to use it in this situation. Mont# Ianuary February 7arch April 7ay Iune
/(.
Cost G' 2'' #12 #*' ''1* '2'
Ho" is the cost function statedC a. y $ G2**-2 % G1.'& b. y $ G21#* % G1.(2& c. y $ G1112 % G.*'& d. y $ G#* % G1.'& Answer : d Difficulty: # b $ <#/ Q 2= $ G1.' G''1* $ a % G1.' <#/= a $ G#*
/*.
Objective:
'
8hat is the estimated total cost at an operating level of 2( hoursC a. G2(*/2 b. G##2' c. G#21* d. G#'-#* Answer : b Difficulty: y $ G#* % G1.' <2(= $ G##2'
/-.
Ho%rs #( 2 2'( # #/ #-'
#
Objective:
'
An inaccurate cost function "ith a slope coefficient that is estimated too lo" may 7O9T li,ely result in a. predicting total costs that are too high. b. initiating cost cutting measures "hen they are unnecessary. c. evaluating a "ea, manager as having strong performance. d. promoting a product that is actually more profitable than budgeted. Answer :
b
Difficulty:
#
Objective:
(
/.
An inaccurate cost function "ith a constant that is estimated too high may 7O9T li,ely result in a. evaluating a "ea, manager as providing strong performance. b. promoting a product that is actually less profitable than budgeted. c. predicting total costs that are too lo". d. replicating processes that are truly cost saving. Answer :
//.
a
Difficulty:
#
Objective:
(
A cost function "ith a lo"er constant than a year ago could indicate all 5&53T a. last yearMs cost function "as inaccurate. b. a ne" operations manager is being effective. c. the sales commission percentage has decreased. d. insurance premiums have decreased. Answer :
c
Difficulty:
#
Objective:
(
1. A cost function "ith a lo"er slope coefficient than a year ago could indicate that a. total variable costs have decreased. b. ne" cost!cutting initiatives are beneficial. c. production has decreased. d. rental costs have decreased. Answer :
b
Difficulty:
#
Objective:
(
11. )f machine maintenance is scheduled at a time "hen production is at a lo" level then a. lo" production is the cost driver of high repair costs. b. an understanding of operations is needed to determine an appropriate cost driver. c. lo" production should be avoided since it is the cause of machine maintenance. d. machine maintenance cannot be accurately predicted. Answer :
b
Difficulty:
#
Objective:
(
12. oodness!of!fit measures ho" "ell the predicted values in a cost estimating equation a. match the cost driver. b. determine the level of activity. c. match the actual cost observations. d. rely on the independent variable. Answer :
c
Difficulty:
2
Objective:
(
Objective:
(
1#. A steeply sloped regression line indicates a. a strong relationship bet"een the cost driver and costs. b. a greater proportion of fixed costs than variable costs. c. an economically plausible relationship exists. d. management should cut costs. Answer :
a
Difficulty:
#
1'. The a. b. c. d.
smaller the residual term the stronger the relationship bet"een the cost driver and costs. the "ea,er the relationship bet"een the cost driver and costs. the steeper the slope of the cost function. the gentler the slope of the cost function.
Answer :
a
Difficulty:
2
Objective:
(
1(. 8hen using activity!based costing all of the follo"ing are true 5&53T that a. all cost drivers should be output unit!level cost drivers. b. there are a great number and variety of cost drivers and cost pools. c. industrial engineering conference and regression analysis can be used to estimate slope coefficients. d. the more cost pools the greater the chance of estimation error. Answer :
a
Difficulty:
2
Objective:
(
1*. Over the short run a nonlinear cost function "ould 7O9T li,ely result from all 5&53T a. quantity discounts for each additional 1 parts purchased. b. purchasing another G2( printing machine to double production. c. hiring a third production supervisor. d. incurring greater total utility costs for each machine!hour of operation. Answer :
d
Difficulty:
#
Objective:
*
Objective:
*
1-. 5xamples of nonlinear cost functions include all 5&53T a. step variable!cost functions. b. step fixed!cost functions. c. learning curves. d. mixed cost functions. Answer :
d
Difficulty:
2
1. A step fixed!cost function a. is fixed over the short run but not over the long run. b. is often approximated "ith a continuous variable!cost function. c. remains the same over a narro" range of activity. d. example includes setup costs. Answer :
a
Difficulty:
2
Objective:
*
1/. A step variable!cost function a. is fixed over the long run but not over the short run. b. is often approximated "ith a continuous variable!cost function. c. remains the same over a "ide range of activity. d. example includes adding additional "arehouse space. Answer :
b
Difficulty:
2
Objective:
*
11. A learning curve is a function a. that measures the decline in labor!hours per unit due to "or,ers becoming better at a 4ob. b. that increases at a greater rate as "or,ers become more familiar "ith their tas,s. c. "here unit costs increase as productivity increases. d. that is linear. Answer :
a
Difficulty:
2
Objective:
*
111. An experience curve a. is a narro"er application of the learning curve. b. measures the decline in cost per unit as production decreases for various value! chain functions such as mar,eting as production increases. c. only measures the decline in labor!hours per unit as units produced increases. d. measures the increase in cost per unit as productivity increases. Answer :
b
Difficulty:
2
Objective:
*
112. To complete the first setup on a ne" machine too, an employee 2 minutes. sing an cumulative average!time learning curve indicates that the second setup on the ne" machine is expected to ta,e a. 1* minutes. b. 12 minutes. c. minutes. d. * minutes. Answer : b Difficulty: # 2 x . $ 1*; <2 % &=>2 $ 1*; & $ 12 minutes
Objective:
-
11#. To complete the first setup on a ne" machine too, an employee 2 minutes. sing an incremental unit!time learning model indicates that the second setup on the ne" machine is expected to ta,e a. 1* minutes. b. 12 minutes. c. minutes. d. * minutes. Answer : a 2 x . $ 1* minutes
Difficulty:
2
Objective:
-
2
Objective:
-
11'. Bearning curve effects can be incorporated a. into performance evaluations. b. into production schedules. c. "hen using costs to price products. d. into all of the above. Answer :
d
Difficulty:
11(. The learning!curve models presented in the text a. examine ho" quality increases over time. b. examine ho" efficiency increases as more units are produced. c. examine ho" setup costs decline as more "or,ers are added. d. examine the change in variable costs "hen quantity discounts are available. Answer :
b
Difficulty:
2
Objective:
-
Objective:
11*. The ideal database contains a. numerous cost driver observations. b. reliably measured observations. c. cost driver observations spanning a "ide range. d. all of the above. Answer :
d
Difficulty:
1
11-. ?ata collection problems arise "hen a. data are recorded electronically rather than manually. b. accrual!basis costs are used rather than cash!basis costs. c. fixed and variable costs are not separately identified and both are allocated to products on a per unit basis. d. purely inflationary price effects are removed. Answer :
c
Difficulty:
#
Objective:
11. 7anagers that design data collection reports that regularly and routinely obtain required data are helping to ensure that a. inflationary effects are removed. b. all data are recorded. c. extreme values are not used to calculate cost functions. d. the relationship bet"een the cost driver and the cost remains stable over time. Answer :
b
Difficulty:
2
Objective:
Objective:
11/. 5xtreme values of observations may be the result of a. a misplaced decimal point in the recorded data. b. classifying a cost incorrectly. c. a temporary plant shutdo"n. d. all of the above. Answer :
d
Difficulty:
2
12. All of the follo"ing are cost analysis problems 5&53T a. fixed costs are allocated as if they are variable costs. b. extreme observations are ad4usted or removed. c. time periods differ for measuring items included in the dependent variable and the cost driver
b
Difficulty:
#
Objective:
121. The coefficient of determination is important in explaining variances in estimating equations. For a certain estimating equation the unexplained variation "as given as 2*((. The total variation "as given as '*(. 8hat is the coefficient of determination for the equationC a. .#' b. .'# c. .(d. .** Answer : b Difficulty: 2 r $ 1 ! <2*((>'*(= $ .'#
2
Objective:
A
122. The Phas,ara orporation used regression analysis to predict the annual cost of indirect materials. The results "ere as follo"s: Indre"t Matera)s Cost E*p)aned '+ (nts Prod%"ed onstant G21/ 9tandard error of @ estimate G'(* 2 r .-#2 Eumber of observations 22
& coefficient
11.-( 2.1-*
8hat is the linear cost functionC a. @ $ G21/ % G11.-(& b. @ $ G'(* % G(.1(& c. @ $ G21 % G'.*& d. none of the above Answer :
a
Difficulty:
2
Objective:
A
12#. raigMs ola "as to manufacture 1 cases of cola next "ee,. The accountant provided the follo"ing analysis of total manufacturing costs. Vara')e onstant )ndependent variable
Coe,,"ent 1 2
Standard Error -1./' /1.-'
t$Va)%e 1.#/ 2.1
r 2 $ .2 8hat is the estimated cost of producing the 1 cases of colaC a. G21 b. G1'2-1 c. G12 d. G/ Answer : a Difficulty: y $ G1 %
2
Objective:
A
12'. 3amMs 9tables used t"o different independent variables
$tandard %rror 1/.12 2./'
t-"alue '.*1 -.11
$tandard %rror 1-#./ 2'-.1'
t-"alue '.'' #.(
r 2 $ .(* N%m'er o, #orses: "ariable #oefficient onstant '-*'.( )ndependent Dariable *'./
r 2 $ .*# 8hat is the estimated total cost for the coming year if 1* trainer hours are incurred and the stable has ' horses to be trained based on the best cost driverC a. G///2/./ b. G#(-(*.( c. G##(#1#.#2 d. G1#'''''.( Answer : b Difficulty: # Objective: A y $ G'-*'.( % G*'./<'= $ G#(-(*.( based on highest r 2 "hich uses of horses as the cost driver
EXERCISES AND PROBLEMS
12(.
8rite a linear cost function equation for each of the follo"ing conditions. se y for estimated costs and & for activity of the cost driver. a. ?irect manufacturing labor is G1 per hour. b. ?irect materials cost G/.2 per cubic yard. c. tilities have a minimum charge of G1 plus a charge of G.( per ,ilo"att! hour. d. 7achine operating costs include G2 of machine depreciation per year plus G-( of utility costs for each day the machinery is in operation. Ans.er:
a. b. c. d.
y $ G1& y $ G/.2& y $ G1 % G.(& y $ G2 % G-(&
Difficulty: 1
12*.
Objective: 1
The cost of the personnel department at the 7iller ompany has al"ays been charged to the production departments based upon number of employees. 6ecently opinions gathered from the department managers indicated that the number of ne" hires might also be a predictor of personnel costs to be assigned. Total personnel department costs are G12. Department Department Department ost ?river A B C Eumber of employees # 2( ( The number of ne" hires 1( 2( 1 Re/%red: sing the above data prepare a report that contrasts the different amounts of personnel department cost that "ould be allocated to each of the production departments if the cost driver used is a. number of employees. b. the number of ne" hires. c. 8hich cost estimation method is being used by 7iller ompanyC Ans.er:
ost ?river a. Eumber of employees b. The number of ne" hires
Department Department Department A B C #>* 2(>* (>* G* G( G1
1(>( G#*
2(>( G*
c. 7iller ompany is using the conference method for cost estimation. Difficulty: 2
Objective: #
1>( G2'
12-.
The managers of the production department have decided to use the production levels of 2x2 and 2x' as examples of the highest and lo"est years of operating levels. ?ata for those years is as follo"s: ear 2x2 2x'
C#em"a)s %sed 1' gallons 12 gallons
O!er#ead Costs G11( G1
Re/%red:
8hat is the cost estimating equation for the department if g allons of chemicals are used as the cost driverC Ans.er:
9lope
$ <1' ! 12= $ G.-(
onstant
$ G1 ! G.-(<12= $ G1
5stimating equation
$ G1 % G.-(?7
Difficulty: 1
12.
Objective: '
8immerMs 9torage ran its free+er in February a slo" month for #* hours for a total cost of G(-*. )n Iuly a pea, month the free+er ran for -2 hours for a total cost of G2. Re/%red:
a.
8hat is the cost estimating equation for the department if hours of free+er use are used as the cost driverC
b.
8hat is the estimated total cost at an operating level of ( hoursC
Ans.er:
a.
b.
9lope
$ <-2 ! #*= $ G*
onstant
$ G2 ! <-2 x G*= $ G##12
5stimating equation
$ G##12 % G*?BH
Total costs of ( hours
$ G##12 % G*<(= $ G*-12
Difficulty: 2
Objective: '
12/.
The 8ildcat ompany has provided the follo"ing information: (nts o, O%tp%t ?irect materials 8or,ersN "ages 9upervisorsN salaries 5quipment depreciation 7aintenance tilities Total
02000 (nts G 1 1 #12 1(12 1* #' G21
342000 (nts G 2(2 1(12 #12 1(12 11' (2 G2*(*
sing the high!lo" method and the information provided above a. identify the linear cost function equation and b. estimate the total cost at #* units of output. Ans.er: a. Dariable cost $ <'2 ! #=$ G(*.' Fixed cost $ G2*(* ! G(*.'<'2= $ G'/* ost function is y $ G'/* % G(*.'&
b.
Output level of #* units
Difficulty: 2
1#.
$ G'/* % G(*.'<#*= $ $ G2(2-2 total cost Objective: '
As part of his 4ob as cost analyst 7ax Thompson collected the follo"ing information concerning the operations of the 7achining ?epartment: O'ser!aton Ianuary February 7arch April 7ay
Ma"#ne$#o%rs ' '* # '' '(
Tota) Operatn5 Costs G'( '/( '(-( ' '/
Re/%red: a. se the high!lo" method to determine the estimating cost function "ith machine!hours as the cost driver. b. )f IuneNs estimated machine!hours total '2 "hat are the total estimated costs of the 7achining ?epartmentC Ans.er: a. 9lope coefficient $ <'* ! #= $ G'.*-( per machine! hour
onstant $ G'/( !
IuneNs estimated costs $ G2-/#-.( % G'.*-(<'2= $ G'-*2(
Difficulty: 2
Objective: '
1#1.
Tessmer 7anufacturing ompany produces inventory in a highly automated assembly plant in Olathe 0ansas. The automated system is in its first year of operation and management is still unsure of the best "ay to estimate the overhead costs of operations for budgetary purposes. For the first six months of operations the follo"ing data "ere collected: O'ser!aton Ianuary February 7arch April 7ay Iune
Ma"#ne$#o%rs # #*( #/ ## #2( #1
6)o.att$#o%rs '(2 '#' '( '2/ '2 '12
Tota) O!er#ead Costs G1# 1#* 1#/2 1#* 12* 12
Re/%red:
a. b. c.
se the high!lo" method to determine the estimating cost function "ith machine!hours as the cost driver. se the high!lo" method to determine the estimating cost function "ith ,ilo"att!hours as the cost driver. For Iuly the company ran the machines for # hours and used ' ,ilo"att!hours of po"er. The overhead costs totaled G11'. 8hich cost driver "as the best predictor for IulyC
Ans.er:
a.
Ma"#ne$#o%rs: 9lope coefficient $ <#/ ! #1= $ G2'. per machine!hour onstant $ G1#/2 !
b.
6)o.att$#o%rs: 9lope coefficient $ <'(2 ! '12= $ G.'( per ,ilo"att!hour onstant $ G1# !
c.
7%)+-s estmated "osts: "ith machine!hours $ G'(* % G2'<#= $ G11-* "ith ,ilo"att!hours $ !G*(' % G.'(<'= $ G11'* The best estimator for Iuly "as the ,ilo"att!hour cost driver.
Difficulty: #
Objective: '
1#2.
3atric, 6oss the president of 6ossMs 8ild ame ompany has as,ed for information about the cost behavior of manufacturing overhead costs. 9pecifically he "ants to ,no" ho" much overhead cost is fixed and ho" much is variable. The follo"ing data are the only records available. Mont# February 7arch April 7ay Iune
Ma"#ne$#o%rs 1- 2 1 2( #(
O!er#ead Costs G2( 222( 1//( 21( 2#/(
Re/%red:
sing the high!lo" method determine the overhead cost equation. se machine! hours as your cost driver. Ans.er:
High: Iune Bo": April ?ifference
#( 1 2(
Dariable cost per 7H:
G'>2( $ G1.* per 7H
Fixed cost:
G1//( $ a % G1.*<1= a $ G1#(
5stimated cost equation:
y $ G1#( % G1.* <1=
Difficulty: 2
Objective: '
G2#/( 1//( G '
1##.
HarryMs 3icture manufactures various picture frames. 5ach ne" employee ta,es ( hours to ma,e the first picture frame and ' hours to ma,e the second. The manufacturing overhead charge per hour is G2. Re/%red:
a. 8hat is the learning!curve percentage assuming the cumulative average methodC b. 8hat is the time needed to build picture frames by a ne" employee using the cumulative average!time methodC @ou may use an index of !.1(2. c. 8hat is the time needed to produce the 1*th frame by a ne" employee using the incremental unit!time methodC @ou may use an index of !.#21/. d. Ho" much manufacturing overhead "ould be charged to the 1* picture frames using the average!time approachC Ans.er:
a.
7o' 1 2
Ho%rs ( '
C%m%)at!e ( /
Bearning percentage $ '.(>( $ ./ b. @ $ p &q $ ( x !.1(2 $ #.*( hours or 1 unit $ ( 2 units $ ( x ./ $ '.( ' units $ '.( x ./ $ '.( units $ '.( x ./ $ #.*( hours Time to build units: x #.*( $ 2/.2 hours c. @ $ p &q $ ( x 1*!.#21/ $ 2.' hours or 1 unit $ ( 2 units $ ( x . $ ' ' units $ ' x . $ #.2 units $ #.2 x . $ 2.(* 1* units $ 2.(* x . $ 2.' hours d. Total time $ 2.' x 1* $ #2.-* hours Overhead charge $ #2.-* x G2 $ G*((.#* Difficulty: #
Objective: *
C%m%)at!e A!era5e ( '.(
1#'.
5ach time 7ayberry Eursery hires a ne" employee it must "ait for some period of time before the employee can meet production standards. 7anagement is unsure of the learning curve in its operations but it ,no"s the first 4ob by a ne" employee averages # hours and the second 4ob averages 2' hours. Assume all 4obs to be equal in si+e. Re/%red:
a. 8hat is the learning!curve percentage assuming the cumulative average!time methodC b. 8hat is the time for a ne" employee to build 1* units "ith this learning curve using the cumulative average!time methodC @ou may use an index of !.1(2. Ans.er:
a.
7o' 1 2
Ho%rs # 2'
C%m%)at!e # ('
Bearning percentage $ 2-># $ ./ b. @ $ p &q $ # x 1*!.1(2 $ 1/.*# or 1 unit $ # 2 units $ # x ./ $ 2' units $ 2- x ./ $ 2'.# units $ 2'.# x ./ $ 21.1* units $ 21.- x ./ $ 1/.*# hours 1* x 1/.*# $ #1'./ hours Difficulty: 2
Objective: *
C%m%)at!e A!era5e # 2-
1#(.
The ne" cost analyst in your accounting department has 4ust received a computer! generated report that contains the results of a simple regression program for c ost estimation. The summary results of the report appear as follo"s: Vara')e onstant )ndependent variable
Coe,,"ent #(./2 (*#.
Standard Error 1*.2 2(.'
t$Va)%e 2.2' 2.-'
r 2 $ .-( Re/%red: a. 8hat is the cost estimation equation according to the reportC b. 8hat is the goodness of fitC 8hat does it tell about the estimating equationC Ans.er: a. y $ G#(./2 % G(*#.& b. oodness of fit is .-(. )t measures ho" "ell the predicted values match the actual observations. )n this case the equation passes the goodness of fit test because it is substantially above .# the threshold of acceptance.
Difficulty: 1
1#*.
Objective: A
Ee"ton ompany used least squares regression analysis to obtain the follo"ing output: Pa+ro)) Department Cost E*p)aned '+ N%m'er o, Emp)o+ees onstant G( 9tandard error of @ estimate *# 2 r ./2' Eumber of observations 2 & coefficient
1./2 ./**
Re/%red: a. 8hat is the total fixed costC b. 8hat is the variable cost per employeeC c. 3repare the linear cost function. d. 8hat is the coefficient of determinationC omment on the goodness of fit. Ans.er: a. The constant or intercept is the total fixed cost of G(. b. The variable cost per employee is the & coefficient of G1./2. c. y $ G( % G1./2& d. The coefficient of determination is the r 2of ./2'. This represents a very high goodness of fit. The closer to 1. the better the cost driver explains the cost. Therefore the conclusion can be dra"n that there is a significant relationship bet"een the cost of the payroll department and the number of employees.
Difficulty: 2
Objective: A
1#-.
9chotte 7anufacturing ompany uses t"o different independent variables
#oefficient -'.# (2./
$tandard %rror #'1.2 #(.2
t-"alue 2.1/ 1.(
#oefficient 2'2./ (.*
$tandard %rror -(.' 2.
t-"alue #.2' 2.
r 2 $ .## N%m'er o, pa"8a5es: "ariable onstant )ndependent Dariable
r 2 $ .-# Re/%red:
a. 8hat are the estimating equations for each cost driverC b. 8hich cost driver is best and "hyC Ans.er:
a. 7achine!hours Eumber of pac,ages
y $ G-'.# % G(2./& y $ G2'2./ % G(.*&
b. 7achine!hours has a lo" r 2 "hich implies that a small proportion of the variance is explained by machine!hours thereby ma,ing it less attractive than number of pac,ages as a cost predictor. Also for the independent variable number of pac,ages the t!value of 2. indicates that a relationship exists bet"een the independent and dependent variables. For machine!hours the t!value <1.(= is belo" 2. indicating that the coefficient is not significantly different from +ero and that there may not be a relationship bet"een the independent and dependent variables. The t!values of the constant terms
Objective: A
CRITICAL THINKING
1#.
7unir Hassan controller gathered data on overhead costs and direct labor!hours over the past 12 months. Bist and discuss the different approaches 7unir can use to estimate a cost function for overhead costs using direct labor!hours as the cost driver. Ans.er:
The four approaches to cost estimation are: 1. 2. #. '.
)ndustrial engineering method onference method Account analysis method Juantitative analysis of current or past cost relationships
The industrial engineering method also called the "or,!measurement method estimates cost functions by analy+ing the relationship bet"een inputs and outputs in physical terms. The conference method estimates cost functions on the basis of analysis and opinions about costs and their drivers gathered from various departments of an organi+ation
1#/.
Objective: #
6oger 7oon has 4ust purchased the film studio of a movie company that speciali+es in comedies. He found that the company did not try to estimate the cost of ma,ing a movie. )nstead it 4ust gave the producer a budget and told him>her to ma,e a movie "ithin budget. 7r. 7oon does not li,e the former movie!budget concept and desires to establish a formal cost estimation system. Re/%red:
8hat are some of the potential problems that may be encountered in changing from a budget to a cost estimation movie ma,ing systemC
