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