Costing – Set 6 January 30, 2025 by aasi 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 Costing – Set 6 Dear ! This is Costing – Set 6 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Line which uses to join observations with lower and highest values of cost driver is called straight line horizontal line curved line vertical line 2 / 50 2) Considering relationship of variables, relationship in which activity cost is included in dependent variable, which has similar cost driver is classified as no homogeneous relationship homogeneous relationship heterogeneous relationship extreme relationship 3 / 50 3) In quantitative analysis of estimating cost function, last and foremost step is to evaluate price driver evaluate variable driver evaluate cost driver evaluate demand driver 4 / 50 4) First step in estimation of cost function by using quantitative analysis is to choose dependent variable choose price estimation method choose independent variable choose cost estimation method 5 / 50 5) If actual selling price is $500, actual result is $250 and actual units sold are 350, then selling price variance will be $57,500 $97,500 $67,500 $87,500 6 / 50 6) Worse fit between estimated cost and actual observations is shown on regression line with smaller residual terms larger residual terms variable residual terms zero residual terms 7 / 50 7) In Regression Analysis, if an observed cost value is 85 and disturbance error is 25 then predicted cost value will be 60 110 70 125 8 / 50 8) Method which considers lowest and highest values of cost driver and cost within relevant range is called constant equation low high method high low method variable equation 9 / 50 9) Vertical dashed line in graphical representation of cost function represents the graphical representation irrelevant range relevant range cost representation 10 / 50 10) In dependent variable cost pool, relationship between individual cost items and cost drivers can be classified as no homogeneous relationship heterogeneous relationship an extreme relationship homogeneous relationship 11 / 50 11) An estimated coefficient, which indicates degree by which estimated values are affected by random factors is known as average of estimated coefficient weighted error of estimated coefficient standard error of estimated coefficient variance of estimated coefficient 12 / 50 12) Relationship between cost and cost driver is economically plausible if goodness of fit has no meaning has no index values has meaning has index values 13 / 50 13) Situation in which two or more independent variables are highly correlated is known as division linearity price linearity cost linearity multi-collinearity 14 / 50 14) Cost that has elements of variable and fixed costs at same time is semi variable cost mixed cost Both B and C variable cost 15 / 50 15) For slope coefficient b, value of estimated coefficient is considered as t-value d-value b-value c-value 16 / 50 16) In linear cost function, which is y = a + bx, y is classified as predicted price predicted fixed cost predicted variable cost predicted cost 17 / 50 17) In adjustment issues of costing, database must consider wide range values of mixed object cost object cost driver fixed object 18 / 50 18) If actual result is $26000, flexible budget amount is $13000, then flexible budget amount will be $49,000 $39,000 $15,000 $13,000 19 / 50 19) Third step in estimation of cost function, by using quantitative analysis is collection of data for price and cost driver dependent variable and cost driver cost and cost object independent variable and cost driver 20 / 50 20) If residual error is 51 and predicted cost value is 37, then observed cost value will be 88 24 14 68 21 / 50 21) Cause and effect relationship between activity and costs is result of measureable unit relationship knowledge of operations contractual agreement all of these 22 / 50 22) Slope coefficient of linear cost function is one three zero two 23 / 50 23) To decide whether cost is variable cost or fixed cost with respect to some specific activity depends upon units of labour unit of production units of inventory time horizon 24 / 50 24) Cost analysis method, which uses mathematical method to use fit between past data observations and cost functions is termed as quantitative analysis method account analysis method qualitative analysis method conference analysis method 25 / 50 25) If difference between costs linked to highest and lowest observation of cost driver is $36000 and observation of cost driver is 30 machine hours, then slope coefficient would be $1,800 $1,600 $1,400 $1,200 26 / 50 26) Regression Analysis Method of quantitative analysis of cost function considers Four data points Two data points One data point all data points 27 / 50 27) Function which is used to measure decline in per unit cost of different business functions is classified as mixed curve fixed curve experience curve discrete curve 28 / 50 28) Method, which considers cost and cost drivers of departments such as employee relations and process engineering is termed as manufacturing method pricing method inference method conference method 29 / 50 29) In specification analysis, assumptions related to linearity states but linearity must be within insignificant range significant range irrelevant range relevant range 30 / 50 30) In regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be 36 56 46 76 31 / 50 31) If an unexplained variation is 350050 and total variation is 700505, then coefficient of determination would be 2 0.7003 0.5003 3 32 / 50 32) If actual result is $25000 and flexible budget amount is $11000, then flexible budget amount is $56,000 $14,000 $46,000 $36,000 33 / 50 33) Formula of 1 – unexplained variation / total variation is used to calculate coefficient of determination coefficient of index coefficient of residual coefficient of prediction 34 / 50 34) In a given scenario, if cost is considered as indirect cost then independent variable will be considered as price allocation base demand allocation base cost allocation base supply allocation base 35 / 50 35) A technique which minimizes sum of squared vertical difference, to determine regression line is considered as negative square technique least square technique most square technique positive square technique 36 / 50 36) Work measurement method of cost estimation is also called industrial engineering method measuring engineering method unit engineering method price engineering method 37 / 50 37) In estimation of cost function, an example of independent variable is quantity stored quality of product quantity manufactured level of activity 38 / 50 38) In estimation of cost functions, variations in a single activity level represents the related total costs related per unit cost related variable cost related fixed cost 39 / 50 39) Chances of cost to be considered as variable are more, if the time horizons are short time horizons are long time horizons are relevant time horizons are irrelevant 40 / 50 40) If difference in costs is $32000 and slope coefficient is 0.40, then difference in machine hours would be $12,800 $80,000 $22,800 $70,000 41 / 50 41) Examples of nonlinear cost functions are step price functions step object functions step cost functions step constant functions 42 / 50 42) Better fit between estimated cost and actual observations is represented by variable residual terms zero residual terms larger residual terms smaller residual terms 43 / 50 43) Function used to measure decline in labour hours per unit as units of production increases is called learning curve linear curve mixed curve fixed curve 44 / 50 44) Cause and effect relationship that exists between change in total cost level and change in level of activity, is measured with help of estimation driver production driver cost driver price driver 45 / 50 45) If an unexplained variation is 456870 and total variation is 955000, then coefficient of determination will be 0.4783 0.5216 0.4528 0.5425 46 / 50 46) Learning curve models include both a and b incremental production learning model incremental unit time learning model cumulative average time learning model 47 / 50 47) Value, which measures that how large is value of standard error in relevance to value of estimated coefficient is termed as c-value b-value d-value t-value 48 / 50 48) In Regression Analysis, testing of assumptions if these are true or not is classified as significance analysis specification analysis weighted analysis average analysis 49 / 50 49) Flexible budget variance for revenues of company is classified as primary variance profit variance investment variance selling price variance 50 / 50 50) In plotting of cost functions, level of activities according to which charged cost is represented on x-axis term axis unit axis y-axis Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this quiz with your friends and see who scores the highest! 🏆🤩🔥 LinkedIn Facebook Follow Us @ 0% Restart quiz Exit We’d love to hear your thoughts! 📝 Share your valuable review with us. 🙌 🌟 Thank you for your support! 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