Costing

✅ The correct answer is A.
Cost analysis method, which uses mathematical method to use fit between past data observations and cost functions is termed as quantitative analysis method. Quantitative methods emphasize objective measurements and the statistical, mathematical, or numerical analysis of data collected through polls, questionnaires, and surveys, or by manipulating pre-existing statistical data using computational techniques.

✅ The correct answer is A.
Relevant ordering costs are added into relevant carrying costs to calculate relevant total costs. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred when making business decisions.

✅ The correct answer is C.
The service departments render service (benefit) to the production departments. Service departments may exist to provide services of various kinds to other departments. For example, personnel, maintenance, boiler house, pump house, power generation departments are service departments which provide service to the production and other service centres.

✅ The correct answer is B.
Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as homogenous cost pool. A cost pool is a grouping of individual costs, typically by department or service center.

✅ The correct answer is B.
Decision model to calculate optimal quantity of inventory to be ordered is called economic order quantity. Economic Order Quantity (EOQ) is a production formula used to determines the most efficient amount of goods that should be purchased based on ordering and carrying costs.

✅ The correct answer is B.
Relationship between change in activity and change in total costs is considered as cause and effect relationship.

✅ The correct answer is C.
In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as an activity. Activity-based costing (ABC) is an accounting method that identifies and assigns costs to overhead activities and then assigns those costs to products.

✅ The correct answer is C.
Cost p.u 160

75%is variable cost 120p.u

40rs p.u fixed cost (fixed cost not change when production unit increase or decrease) fixed cost is
40 * 10000 = Rs. 400000

Cal cost p.u if production increase by 25%

10000 + 25% = Rs. 12500

Total cost = variable cost + fixed cost

(12500 * 120) + 400000 = Rs. 1900000

Cost p.u = 1900000 / 12500 = Rs. 152

✅ The correct answer is B.
A document which consists information about labour time usage, for specific job in a specific department, is known as labour time record. A document which records the amount of time spent by an employee, showing the analysis between a numbers of activities during a payment period. It may record the wages (labour cost) of the time spent.

✅ The correct answer is D.
Strength of relationship between cost driver and cost is considered as goodness of fit. Goodness of fit measures the degree of association between cost and activity.