1. A cost that changes in total as output changes is a variable cost.

   True

   False

1. Managerial judgment is critically important in determining cost behavior.

   True

   False

1. The predetermined overhead rate is calculated at the beginning of the year by dividing the total estimated annual overhead by the total estimated level of cost driver

   True

   False

1. If actual overhead is greater than applied overhead, the variance is called underapplied overhead.

   True

   False

1.   The direct method of allocation recognizes all interactions among support departments.

   True

   False

"Changes in Accounting Principles and Changes in Accounting Estimates"

Use the Internet or Strayer Library to research a company that had a change in accounting principles within the past five (5) years. Discuss the accounting principles that the identified company changed and explain the major reasons why the company changed accounting principles. Give your opinion on whether you believe the change in accounting principles was motivated by an attempt to provide more useful information or to make financial results look better to investors and creditors. Provide a rationale for your response.

Summarize primary and secondary changes, and describe possible functional implications of these changes for each of the following:

Cognitive

integumentary

cardiopulmonary

skeletal

muscular

neurological

sensory systems

Changes to both the money supply and the velocity of money include changes in aggregate demand. However, the long-run impacts of changes in these variables are different. How are the effects of an increase in the velocity of money and the effects of an increase in the money supply different?

• Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy. Is one or the other preferable in specific situations? Imagine for a moment that you have two roommates, who each have opposing viewpoints on nearly everything, including politics and economics. Taylor is adamant that the best way to manage the economy is through tax changes, while Morgan insists that it’s better to adjust the economy through government spending. What would a Neoclassical economist say? What would a Keynesian economist say? Which roommate do you agree with, and why? .

Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy. Is one or the other preferable in specific situations?

Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy. Is one or the other preferable in specific situations?

• Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy. Is one or the other preferable in specific situations?

Monopolistic competition is like monopoly in that:

price changes are dictated by changes in supply.

both industries represent price-taking firms.

both industries represent price-making firms

both industries have high barriers to entry.

neither industry has high barriers to entry.

Question 26

Which is a dynamic under monopolistic competition in the long run?

Profits tend towards zero because of competition and low barriers to entry

Firms will operate at the lowest possible average total cost

Expenditures on advertising approaches zero

All of the above are correct