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