Costing mcqs

✅ ANSWER: B
Service occupied = 30 × 40 × 65/100 =780

The room servicing cost per occupied room-night last period, to the nearest Rs, was:
= 3900/780 = Rs. 5.00

✅ ANSWER: D
In incremental cost allocation method, cost object user who is ranked third in ranking order is classified as second incremental user.

✅ ANSWER: B
In specification analysis, assumptions related to residuals states must be independent. The goal of the Requirements Analysis and Specification is to clearly understand customer requirements and to systematically organize these requirements in a specification document.

✅ ANSWER: A
Sales budget variance is subtracted from flexible budget amount to calculate static budget amount. A static budget is a type of budget that incorporates anticipated values about inputs and outputs that are conceived before the period in question begins.

✅ ANSWER: B
An example of fixed cost rent for building. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

✅ ANSWER: B
In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own Variable Cost. A variable cost is a corporate expense that changes in proportion to production output. Variable costs increase or decrease depending on a company’s production volume; they rise as production increases and fall as production decreases.

✅ ANSWER: D
Third ranked product in incremental revenue-allocation method is known as Third incremental product.

✅ ANSWER: C
Under Halsey plan efficiency is shared by employee and employer equally.

✅ ANSWER: D
Methods used to allocate costs of reciprocal support departments include direct method, step down and reciprocal method.

✅ ANSWER: D
Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called regression method. Regression analysis is a set of statistical processes for estimating the relationships among variables.