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MCQs

Total Questions : 138 | Page 7 of 14 pages
Question 61. The graphical representation of cost driver data and costs are considered as
  1.    plotting the data
  2.    plotting the costs
  3.    plotting the cost drivers
  4.    plotting curved line
 Discuss Question
Answer: Option A. -> plotting the data
Answer: (a).plotting the data
Question 62. In assumptions of specific analysis, the normality of residuals is satisfied with the use of
  1.    real price data
  2.    real cost data
  3.    multiplier data
  4.    divisional data
 Discuss Question
Answer: Option B. -> real cost data
Answer: (b).real cost data
Question 63. Evaluation criteria of regression equation must be considered as
  1.    goodness of fit
  2.    economic plausibility
  3.    significance of independent variable
  4.    all of above
 Discuss Question
Answer: Option D. -> all of above
Answer: (d).all of above
Question 64. In quantitative analysis to estimate cost function, the fourth step is to
  1.    write a liner function
  2.    write price function
  3.    write manufacturing function
  4.    plot the data
 Discuss Question
Answer: Option D. -> plot the data
Answer: (d).plot the data
Question 65. Which one of the following is the main advantage of quantitative method?
  1.    non expression
  2.    non constant
  3.    objective
  4.    non objective
 Discuss Question
Answer: Option C. -> objective
Answer: (c).objective
Question 66. The large residual term and negative slope of line indicate
  1.    inverse proportion
  2.    direct proportion
  3.    badness proportions
  4.    goodness proportion
 Discuss Question
Answer: Option A. -> inverse proportion
Answer: (a).inverse proportion
Question 67. The success of cost reduction initiatives are evaluated by accurate
  1.    cyclical factors
  2.    indexed technique
  3.    price estimation
  4.    cost estimation
 Discuss Question
Answer: Option D. -> cost estimation
Answer: (d).cost estimation
Question 68. A concept used to define the learning curve in broader application is called
  1.    discrete curve
  2.    fixed curve
  3.    mixed curve
  4.    experience curve
 Discuss Question
Answer: Option D. -> experience curve
Answer: (d).experience curve
Question 69. An implementation of activity based costing would be possible only if the accountants find
  1.    goodness of each activity
  2.    handling of each activity
  3.    cost driver for each activity
  4.    cost object for each activity
 Discuss Question
Answer: Option C. -> cost driver for each activity
Answer: (c).cost driver for each activity
Question 70. In the cause and effect relationship between cost level and cost driver, the inflationary price effects are removed by dividing cost through
  1.    price index
  2.    cost index
  3.    profit index
  4.    cost driver index
 Discuss Question
Answer: Option A. -> price index
Answer: (a).price index

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