110
125
60
70
✅ The correct answer is C.
Predicted cost = Observed cost value – Disturbance error
= 85 – 25 = 60
Predicted cost = Observed cost value – Disturbance error
= 85 – 25 = 60
Costing mcqs
Slope coefficient of cost function is zero because it intersects the
x-axis at one
y-axis at constant
x-axis at constant
y-axis at one
✅ The correct answer is B.
Slope coefficient of cost function is zero because it intersects the y-axis at constant.
Slope coefficient of cost function is zero because it intersects the y-axis at constant.
Average method of pricing the material issues is useful when ___________.
material prices are rising
material prices are falling
material prices are constant
material prices are fluctuating
✅ The correct answer is D.
Average method of pricing the material issues is useful when material prices are fluctuating. Under the ‘Average Cost Method’, it is assumed that the cost of inventory is based on the average cost of the goods available for sale during the period. The average cost is computed by dividing the total cost of goods available for sale by the total units available for sale.
Average method of pricing the material issues is useful when material prices are fluctuating. Under the ‘Average Cost Method’, it is assumed that the cost of inventory is based on the average cost of the goods available for sale during the period. The average cost is computed by dividing the total cost of goods available for sale by the total units available for sale.
If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be
$30,000
$300,000
$40,000
$400,000
✅ The correct answer is B.
If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be $300,000.
Gross Margin = Sale value × Gross margin percentage
$20000 × 15 = $300000.
If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be $300,000.
Gross Margin = Sale value × Gross margin percentage
$20000 × 15 = $300000.
Overhead refers to:
Direct or Prime Cost
All Indirect costs
only Factory indirect costs
Only indirect expenses
✅ The correct answer is B.
Overhead refers to all Indirect costs. Indirect costs include administration, personnel and security costs. These are those costs which are not directly related to production. Some indirect costs may be overhead. But some overhead costs can be directly attributed to a project and are direct costs.
Overhead refers to all Indirect costs. Indirect costs include administration, personnel and security costs. These are those costs which are not directly related to production. Some indirect costs may be overhead. But some overhead costs can be directly attributed to a project and are direct costs.
If difference in costs is $32000 and slope coefficient is 0.40, then difference in machine hours would be
$80,000
$12,800
$70,000
$22,800
✅ The correct answer is A.
Difference in machine hours = Difference in costs ÷ Slope coefficient
= $32000 ÷ 0.40 = $80,000
Difference in machine hours = Difference in costs ÷ Slope coefficient
= $32000 ÷ 0.40 = $80,000
A helpful technique, for accurate forecasts about costs to be incurred in future is a part of
unit estimation
production estimation
cost estimation
price estimation
✅ The correct answer is C.
A helpful technique, for accurate forecasts about costs to be incurred in future is a part of cost estimation. Cost estimation is the art of assigning value.
A helpful technique, for accurate forecasts about costs to be incurred in future is a part of cost estimation. Cost estimation is the art of assigning value.
Systematic flow of services, goods or information from buying material for product delivery to customers is known as
supply chain
value chain
material flow chain
manufacturing flow chain
✅ The correct answer is A.
Systematic flow of services, goods or information from buying material for product delivery to customers is known as supply chain. A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. This network includes different activities, people, entities, information, and resources.
Systematic flow of services, goods or information from buying material for product delivery to customers is known as supply chain. A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. This network includes different activities, people, entities, information, and resources.
Reorder level = ________.
maximum level – minimum level
maximum consumption X maximum reorder period
minimum consumption x minimum reorder period
normal consumption X normal reorder period
✅ The correct answer is B.
Reorder level = maximum consumption X maximum reorder period.
Reorder level = maximum consumption X maximum reorder period.
Calculate the labour turnover rate according to Separation method from the following: No of workers on the payroll: – At the beginning of the month: 500 – At the end of the month: 600 During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited Of these, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme
4.55%
1.82%
6%
3%
✅ The correct answer is A.
Separation method = No of worker separated during the period/Average no of workers at same period × 100
Separation method = No of worker separated during the period/Average no of workers at same period × 100
No of worker separated during the period = 25
Average no of workers = (500+600)/2= 550
∴25/ 550 × 100
=4.55%