Costing

✅ The correct answer is D.
Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as relevant opportunity cost of capital.

✅ The correct answer is B.
Sales volume variance = Flexible budget – Static budget
= $20000 – $9000 = $11,000

✅ The correct answer is C.
This is a level at which normal issue of material are stopped, but issued under special condition It is danger level. Danger level is a level of fixed usually below the minimum level. When the stock reaches danger level, an urgent action for purchase is initiated.

✅ The correct answer is D.
Situation in which two or more independent variables are highly correlated is known as multi-collinearity. Multicollinearity is the occurrence of high intercorrelations among independent variables in a multiple regression model.

✅ The correct answer is A.
Direct material cost = Prime cost – Direct manufacturing labour
= $50000 – $10000 = $40,000

✅ The correct answer is B.
Amount charged from profit and loss account
= Rs. 70000 + Rs. 65000 – Rs. 50000
= Rs. 85000.

✅ The correct answer is A.
Cost, which is related to specific cost object and economically traceable, will be classified as direct cost. A direct cost is a price that can be completely attributed to the production of specific goods or services.

✅ The correct answer is C.
Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as under allocated indirect cost. Overhead allocation is the apportionment of indirect costs to produced goods.

✅ The correct answer is C.
Objective is main advantage of quantitative method. Generally, quantitative methods are designed to provide summaries of data that support generalisations about the phenomenon under study.

✅ The correct answer is A.