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