The method which considers the lowest and highest values of cost driver and cost within relevant range 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. If the relevant opportunity cost of capital is $2950 and the relevant carrying cost of inventory is $6700, then the relevant incremental cost will be _____________?

   A. $9,650
   B. $2,350
   C. $3,750
   D. $2,750

5. Within the relevant range, the cost function in which cost does not change in narrow ranges of activity is called ____________?

   A. fixed cost function
   B. variable cost function
   C. step variable cost function
   D. step fixed cost function

6. If the relevant incremental costs are $5000 and the relevant opportunity cost of invested capital is $2500, then the relevant inventory carrying costs would be ____________?

   A. $7,500
   B. $7,000
   C. $6,500
   D. $6,000

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

   A. straight line
   B. curved line
   C. horizontal line
   D. vertical line

8. If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then the annual relevant carrying cost will be __________?

   A. $5,000
   B. $4,500
   C. $5,500
   D. $6,000

9. If the demand in units are 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be __________?

   A. $200
   B. $190
   C. $160
   D. $180

10. The method, which considers the cost and cost drivers of departments such as employee relations and process engineering is termed as __________?

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