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