Costing MCQs

Question 1

Graphical representation of cost driver data and costs is considered as

Accepted Answer

plotting data

Answer

plotting costs

Answer

plotting cost drivers

Answer

plotting curved line

Question 2

Evaluation criteria of regression equation must be considered as

Accepted Answer

all of above

Answer

goodness of fit

Answer

economic plausibility

Answer

significance of independent variable

Question 3

In assumptions of specific analysis, normality of residuals is satisfied with use of

Accepted Answer

real cost data

Answer

real price data

Answer

multiplier data

Answer

divisional data

Question 4

In quantitative analysis to estimate cost function, fourth step is to

Accepted Answer

plot data

Answer

write a liner function

Answer

write price function

Answer

write manufacturing function

Question 5

A concept used to define learning curve in broader application is called

Accepted Answer

experience curve

Answer

discrete curve

Answer

fixed curve

Answer

mixed curve

Question 6

Large residual term and negative slope of line indicate

Accepted Answer

inverse proportion

Answer

direct proportion

Answer

badness proportions

Answer

goodness proportion

Question 7

Success of cost reduction initiatives are evaluated by accurate

Accepted Answer

cost estimation

Answer

cyclical factors

Answer

indexed technique

Answer

price estimation

Question 8

Which one of following is main advantage of quantitative method?

Accepted Answer

objective

Answer

non expression

Answer

non constant

Answer

non objective

Question 9

An implementation of activity based costing would be possible only if accountants find

Accepted Answer

cost driver for each activity

Answer

goodness of each activity

Answer

handling of each activity

Answer

cost object for each activity