Costing mcqs

✅ The correct answer is A.
Relevant inventory carrying costs = Relevant incremental costs + Relevant opportunity cost of invested capital
= $5000 + $2500 = $7,500

✅ The correct answer is A.
An average unit cost, applicable to each similar produced units is classified as per unit cost.

✅ The correct answer is C.
Number of units are multiplied to per unit price, to calculate flexible budget variable. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results.

✅ The correct answer is B.
Slope coefficient = Difference in costs ÷ Difference in machine hours

Difference in cost = Difference in machine hours × Slope coefficient
= 65000 × 0.75 = $48,750

✅ The correct answer is C.
Percentage of variation in Y explained by X is measured by coefficient of determination. The coefficient of determination (denoted by R2) is a key output of regression analysis. It is interpreted as the proportion of the variance in the dependent variable that is predictable from the independent variable.

✅ The correct answer is C.
Costs associated with the labour turnover can be categorised into Preventive Costs and Replacement costs.

✅ The correct answer is D.
Sum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate total spoilage.

✅ The correct answer is B.
Standardized technique that is performed repetitively on different kind of materials to convert them into different finished products is known as operation.

✅ The correct answer is A.
In incremental cost allocation method, cost object user who is ranked second in ranking order is known as First incremental user.

✅ The correct answer is A.
Scrap is residue of material. It is incidental residue from the materials used in manufacturing operations which is recoverable and measurable without processing.