Costing

✅ The correct answer is A.

✅ The correct answer is A.
In specification analysis, assumptions related to variance states that variance of residuals is constant.

✅ The correct answer is B.
Relationship between cost and cost drivers is not stationary. A Cost Driver is that factor or variable which has a cause and effect relationship with the total cost. The cost driver is the ’cause’ and the ‘cost incurred’ is the effect of it.

✅ The correct answer is B.
Gross margin percentage in constant gross-margin percentage NRV method is based on total production.

✅ The correct answer is B.
Manager who is responsible for investments of company, its costs and revenues is known as investment center. An investment center is a business unit that can utilize capital to contribute directly to a company’s profitability.

✅ The correct answer is B.
A Local Authority is preparing cash Budget for its refuse disposal department. Depreciation of the machinery would not be included in the cash budget. Depreciation is not a cash item and would be excluded from the cash budget.

✅ The correct answer is C.
Bad debt is an example of selling overhead. The expenses incurred by an organization in carrying out its selling activities.

✅ The correct answer is B.
cost object user, who is ranked first in incremental cost allocation method is known as primary user. The term primary user describes someone who interacts with a system. The primary user is in direct contact with the system interface and thus is usually most affected by it.

✅ The correct answer is A.
In plotting of cost functions, level of activities according to which charged cost is represented on x-axis.

✅ The correct answer is D.
An amount by which total cost changes with respect to change in level of activity is classified as slope coefficient. The slope coefficient usually refers to the coefficient of any independent variable, x, in a regression equation.