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MCQs

Total Questions : 138 | Page 13 of 14 pages
Question 121. The cause and effect relationship that exists between change in total cost level and change in level of activity, is measured with the help of
  1.    production driver
  2.    cost driver
  3.    price driver
  4.    estimation driver
 Discuss Question
Answer: Option B. -> cost driver
Answer: (b).cost driver
Question 122. The formula of 1 - unexplained variation ⁄ total variation is used to calculate
  1.    coefficient of determination
  2.    coefficient of index
  3.    coefficient of residual
  4.    coefficient of prediction
 Discuss Question
Answer: Option A. -> coefficient of determination
Answer: (a).coefficient of determination
Question 123. The cost that has elements of variable and fixed costs at the same time is
  1.    variable cost
  2.    mixed cost
  3.    semi variable cost
  4.    both b and c
 Discuss Question
Answer: Option D. -> both b and c
Answer: (d).both b and c
Question 124. In the specification analysis, the assumptions related to linearity states but linearity must be within
  1.    irrelevant range
  2.    relevant range
  3.    significant range
  4.    insignificant range
 Discuss Question
Answer: Option B. -> relevant range
Answer: (b).relevant range
Question 125. In regression analysis, if the predicted cost value is 65 and observed cost value is 19 then the disturbance term will be
  1.    46
  2.    56
  3.    36
  4.    76
 Discuss Question
Answer: Option A. -> 46
Answer: (a).46
Question 126. In adjustment issues of costing, the database must consider wide range values of
  1.    fixed object
  2.    cost driver
  3.    cost object
  4.    mixed object
 Discuss Question
Answer: Option B. -> cost driver
Answer: (b).cost driver
Question 127. The method, which considers the cost and cost drivers of departments such as employee relations and process engineering is termed as
  1.    pricing method
  2.    manufacturing method
  3.    conference method
  4.    inference method
 Discuss Question
Answer: Option C. -> conference method
Answer: (c).conference method
Question 128. In the linear cost function, which is y = a + bx, the 'y' is classified as
  1.    predicted fixed cost
  2.    predicted variable cost
  3.    predicted cost
  4.    predicted price
 Discuss Question
Answer: Option C. -> predicted cost
Answer: (c).predicted cost
Question 129. In Regression Analysis, if an observed cost value is 85 and the disturbance error is 25 then predicted cost value will be
  1.    95
  2.    50
  3.    120
  4.    100
 Discuss Question
Answer: Option B. -> 50
Answer: (b).50
Question 130. If the residual error is 35 and the predicted cost value is 20, then the observed cost value will be
  1.    55
  2.    15
  3.    65
  4.    85
 Discuss Question
Answer: Option A. -> 55
Answer: (a).55

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