The line which uses to join observations with lower and highest values of cost driver is called ___________?

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 which considers the lowest and highest values of cost driver and cost within relevant range is called ____________?

   A. low high method
   B. constant equation
   C. variable equation
   D. high low method

5. The cost analysis method, which uses mathematical method to use fit between past data observations and cost functions is termed as ___________?

   A. quantitative analysis method
   B. qualitative analysis method
   C. account analysis method
   D. conference analysis method

6. The weak relationship between cost and cost driver is indicated on a regression line, which is ___________?

   A. curved
   B. slightly sloped
   C. completely sloped
   D. dotted

7. The cost pool category, which have the similar cause and effect relationship, with each cost driver uses as an allocation base is classified as __________?

   A. heterogeneous price pool
   B. homogenous cost pool
   C. heterogeneous cost pool
   D. homogenous price pool

8. The worse fit between estimated cost and actual observations is shown on regression line with ___________?

   A. larger residual terms
   B. zero residual terms
   C. variable residual terms
   D. smaller residual terms

9. In the cause and effect relationship between cost level and cost driver, the inflationary price effects are removed by dividing cost through _______________?

   A. price index
   B. cost index
   C. profit index
   D. cost driver index

10. The lower plant leasing, lower administrative costs, lower depreciation on equipment and plant are all the factors of _____________?

    A. favorable price variance
    B. unfavorable price variance
    C. favorable spending variance
    D. unfavorable spending variance