Costing

✅ The correct answer is C.

✅ The correct answer is A.
Economic order quantity (EOQ) is the ideal order quantity a company should purchase for its inventory given a set cost of production, a certain demand rate, and other variables.

✅ The correct answer is A.
Costing, which explains how and when scrap affects operating income of company is classified as inventory costing. Inventory is merchandise purchased by merchandisers (retailers, wholesalers, distributors) for the purpose of being sold to customers. The cost of the merchandise purchased but not yet sold is reported in the account Inventory or Merchandise Inventory.

✅ The correct answer is D.
In Regression Analysis, testing of assumptions if these are true or not is classified as specification analysis.

✅ The correct answer is A.
In regression equation, an evaluation criteria considers significance of independent variable. An independent variable is the variable that is changed or controlled in a scientific experiment to test the effects on the dependent variable.

✅ The correct answer is A.
Fifth step in quantitative analysis of estimating cost function is to estimate cost function. A cost estimate is the approximation of the cost of a program, project, or operation. The cost estimate is the product of the cost estimating process.

✅ The correct answer is D.
Re-order level = Safety stock + Total consumption
= 1000 + (500 × 12) = 1000 + 6000 = 7000 units.

✅ The correct answer is D.
In plotting cost functions, number of machine hours and batches are represented on y-axis.

✅ The correct answer is D.
Machine break downs is an abnormal cause of Idle time. Abnormal idle time may arise in case of all types of workers.

✅ The correct answer is B.
Last step in developing operating budget is implementing decision. An operating budget is a forecast of the revenues and expenses expected for one or more future periods.