A. disadvantage of low high method
B. disadvantage of high low method
C. advantage of high low method
D. advantage of low high method
Related Mcqs:
- 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 - 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 - 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 - 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 - 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 - 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 - 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 - 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 - 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 - 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
