Costing MCQs

Question 1

Regression Analysis Method of quantitative analysis of cost function considers

Accepted Answer

all data points

Answer

One data point

Answer

Two data points

Answer

Four data points

Question 2

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

Accepted Answer

$1,200

Answer

$1,400

Answer

$1,600

Answer

$1,800

Question 3

In quantitative analysis of estimating cost function, last and foremost step is to

Accepted Answer

evaluate cost driver

Answer

evaluate variable driver

Answer

evaluate price driver

Answer

evaluate demand driver

Question 4

Work measurement method of cost estimation is also called

Accepted Answer

industrial engineering method

Answer

price engineering method

Answer

measuring engineering method

Answer

unit engineering method

Question 5

Function which is used to measure decline in per unit cost of different business functions is classified as

Accepted Answer

experience curve

Answer

mixed curve

Answer

discrete curve

Answer

fixed curve

Question 6

Worse fit between estimated cost and actual observations is shown on regression line with

Accepted Answer

larger residual terms

Answer

zero residual terms

Answer

variable residual terms

Answer

smaller residual terms

Question 7

Slope coefficient of linear cost function is

Accepted Answer

zero

Answer

one

Answer

two

Answer

three

Question 8

Learning curve models include

Accepted Answer

both a and b

Answer

cumulative average time learning model

Answer

incremental unit time learning model

Answer

incremental production learning model

Question 9

For slope coefficient b, value of estimated coefficient is considered as

Accepted Answer

t-value

Answer

d-value

Answer

c-value

Answer

b-value