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