Costing

✅ The correct answer is A.
Relationship between cost and cost driver is economically plausible if goodness of fit has meaning. The goodness of fit test is a statistical hypothesis test to see how well sample data fit a distribution from a population with a normal distribution. In other words, it tells you if your sample data represents the data you would expect to find in the actual population.

✅ The correct answer is B.
Lower level of production leads to lower repair cost.

✅ The correct answer is D.
Observed cost value = Predicted cost value + Residual error
= 50 + 25 = 75

✅ The correct answer is B.
The term cost refers to the value of sacrifice made to acquire goods or services. The price of product sold or services rendered.

✅ The correct answer is B.

✅ The correct answer is B.
Cost control is a preventive function because it ascertains the cost before its occurrence.

✅ The correct answer is D.
Balance of abnormal gain a/c is transferred to costing profit and loss a/c. Abnormal loss is transferred to the costing P&L.

✅ The correct answer is C.
In process and job costing system, normal spoilage cost is considered as inventoriable costs. Inventoriable costs are included in the cost of a product

✅ The correct answer is A.
Time wages are paid on the basis of actual time. In this system of wage payment, the workers are paid the wages on the basis of time as, per hour, per day, per week, per fortnight or per month etc. This system does not consider the production of the employees during this time.

✅ The correct answer is D.
Difference between flexible budget amount and corresponding static budget amount is classified as sales volume variance. The sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit.