Related Mcqs:

1. If the difference between costs linked to highest and lowest observation of cost driver is $27000 and observation of cost driver is 90 machine hours, then slope coefficient would be ____________?

   A. $800
   B. $400
   C. $300
   D. $600

2. If the 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 __________?

   A. $1,200
   B. $1,400
   C. $1,600
   D. $1,800

3. If the difference between costs linked to highest and lowest observation of cost driver, is $8000 and observation of cost driver is 40 machine hours, then slope coefficient will be _____________?

   A. $16,000
   B. $200
   C. $400
   D. $20,000

4. The method of estimation of cost function, by making the opinions and analysis about cost and cost drivers is classified as ______?

   A. conference method
   B. inference method
   C. pricing method
   D. manufacturing method

5. An assumption of specification analysis states: any observation does not belong to any other observation’s residual value, is classified as ___________?

   A. independence of residuals
   B. dependence of residuals
   C. independence of correlation
   D. none of the above

6. In estimation of cost functions, the variations in a single activity level represents the __________?

   A. related total costs
   B. related fixed cost
   C. related variable cost
   D. related per unit cost

7. Considering the relationship of variables, the relationship in which the activity cost is included in the dependent variable, which has similar cost driver is classified as __________?

   A. heterogeneous relationship
   B. extreme relationship
   C. no homogeneous relationship
   D. homogeneous relationship

8. An analysis and estimation method of cost, by classifying cost accounts as fixed or variable with respect for specific output level is considered as _____________?

   A. manufacturing analysis method
   B. price analysis method
   C. unit analysis method
   D. account analysis method

9. For estimation of each cost pool for cost function, the attention must be paid to __________?

   A. cost object hierarchy
   B. management hierarchy
   C. price hierarchy
   D. cost hierarchy

10. The vertical difference, which measures distance between estimated and actual cost for every single observation is classified as __________?

    A. residual term
    B. positive term
    C. negative term
    D. squared term