Costing mcqs

✅ The correct answer is A.
Regression Analysis Method of quantitative analysis of cost function considers all data points.

✅ The correct answer is B.
A particular term for which specific revenue measurement is required is known as revenue object. A revenue object document is used as the basis for revenue recognition and partner settlement.

✅ The correct answer is B.
Material requisition is meant for supply of material from stores. A materials requisition form is a source document that the production department uses to request materials for manufacturing process. The production manager usually fills out the materials requisition form and delivers it to the materials or storage department where all of the raw materials are stored.

✅ The correct answer is D.
For estimation of each cost pool for cost function, attention must be paid to cost hierarchy. The cost hierarchy is a classification system used in activity-based costing that designates activities based on how easily they can be traced to a product.

✅ The correct answer is A.
In assumptions testing, violation of constant variance is called heteroscedasticity. Heteroscedasticity means unequal scatter. In regression analysis, we talk about heteroscedasticity in the context of the residuals or error term. Specifically, heteroscedasticity is a systematic change in the spread of the residuals over the range of measured values.

✅ The correct answer is A.
Flexible budget variance for revenues of company is classified as selling price variance. Sales price variance measures the change in a company’s total budgeted revenue to the actual revenue earned on a product.

✅ The correct answer is B.
The method in which issue prices of material is computed by dividing total purchase cost of material in stock with total quantity in stock weighted average method. Under this method weighted average price is calculated by dividing the total cost of material purchased during the accounting period, in which the material to be priced is used by the total quantity of material purchased during that period.

✅ The correct answer is C.
An analysis of data over successive past periods, which pertain to some plant, activity and organization is called time series. A time series is a sequence of numerical data points in successive order.

✅ The correct answer is A.
Model, in which produced unit doubles every time as cumulative average time per unit decreases, by a constant percentage can be classified as cumulative average time learning model. The cumulative average time learning curve represents the fact that the time spent per unit declines by a constant percentage as the number of units produced.

✅ The correct answer is D.
Cost which is related to specific cost object and cannot be economically traceable is classified as indirect cost. Indirect costs are costs used by multiple activities, and which cannot therefore be assigned to specific cost objects.