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MCQs

Total Questions : 138 | Page 11 of 14 pages
Question 101. An assumption of specification analysis states: any observation does not belong to any other observation's residual value, is classified as
  1.    independence of residuals
  2.    dependence of residuals
  3.    independence of correlation
  4.    none of the above
 Discuss Question
Answer: Option A. -> independence of residuals
Answer: (a).independence of residuals
Question 102. If the residual error is 25 and the predicted cost value is 50, then the observed cost value would be
  1.    100
  2.    25
  3.    50
  4.    75
 Discuss Question
Answer: Option D. -> 75
Answer: (d).75
Question 103. In multicollinearity, the correlation coefficient between two independent variables must be greater than
  1.    0.7
  2.    0.6
  3.    0.5
  4.    0.4
 Discuss Question
Answer: Option A. -> 0.7
Answer: (a).0.7
Question 104. The relationship between independent variable and dependent variable must be
  1.    general ledger
  2.    non-achievable
  3.    non measureable
  4.    economically plausible
 Discuss Question
Answer: Option D. -> economically plausible
Answer: (d).economically plausible
Question 105. If the coefficients are similar for two accounting periods, then single cost relationship is estimated with the help of
  1.    data of fixed cost
  2.    cost driver of data
  3.    pool of data
  4.    cost object of data
 Discuss Question
Answer: Option C. -> pool of data
Answer: (c).pool of data
Question 106. In adjustment issues and data collection, the inflation affects the
  1.    cost driver and cost
  2.    cost object and cost
  3.    heterogeneous cost
  4.    homogenous cost
 Discuss Question
Answer: Option A. -> cost driver and cost
Answer: (a).cost driver and cost
Question 107. If the difference in costs is $7000 and the difference in machine hours of is $18000, then slope coefficient would be
  1.    2.571
  2.    0.39
  3.    0.2571
  4.    3.39
 Discuss Question
Answer: Option B. -> 0.39
Answer: (b).0.39
Question 108. In adjustment issues of costing, the database must contain reliable measure of
  1.    fixed cost driver
  2.    cost driver and cost
  3.    cost driver and object
  4.    mixed cost driver
 Discuss Question
Answer: Option B. -> cost driver and cost
Answer: (b).cost driver and cost
Question 109. The model which states decline in extra time needed to produce last unit, every time for the cumulative quantity of doubled units produced is classified as
  1.    incremental unit average model
  2.    incremental cost learning model
  3.    incremental unit time learning model
  4.    incremental price learning model
 Discuss Question
Answer: Option C. -> incremental unit time learning model
Answer: (c).incremental unit time learning model
Question 110. A helpful technique, for accurate forecasts about costs to be incurred in future is a part of
  1.    unit estimation
  2.    production estimation
  3.    cost estimation
  4.    price estimation
 Discuss Question
Answer: Option C. -> cost estimation
Answer: (c).cost estimation

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