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Costing MCQ Questions and Solutions with Explanations | Commerce

Costing MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Costing MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-10 section-4

Each section contains 100 MCQs on Costing .
91
For estimation of each cost pool for cost function, attention must be paid to
Discuss
Answer & Solution
Answer: Option D
Solution:
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.
92
A technique for estimating regression line, which minimizes sum of vertical deviations squares is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
A technique for estimating regression line, which minimizes sum of vertical deviations squares is classified as least square technique.
93
Type of relationship stating "how changes in cost driver drives cause changes in cost" will be termed as
Discuss
Answer & Solution
Answer: Option B
Solution:
Type of relationship stating "how changes in cost driver drives cause changes in cost" will be termed as economic plausibility. There is a positive relationship between the number of service reports (a cost driver) and the customer- service department costs.
94
Slope coefficient of cost function is zero because it intersects the
Discuss
Answer & Solution
Answer: Option B
Solution:
Slope coefficient of cost function is zero because it intersects the y-axis at constant.
95
An assumption of specification analysis, which states all values of residuals which are uniformly scattered around regression line is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
An assumption of specification analysis, which states all values of residuals which are uniformly scattered around regression line is classified as normality of residuals. Residuals are the differences between the observed and predicted.
96
Goodness of fit is used to measure wellness of
Discuss
Answer & Solution
Answer: Option B
Solution:
Goodness of fit is used to measure wellness of predicted values. The goodness-of-fit is a measure of how well the fitted PF accounts for the data.
97
Slope coefficient is 0.75 and difference in machine hours is 65000 then difference in cost would be
Discuss
Answer & Solution
Answer: Option B
Solution:
Slope coefficient = Difference in costs ÷ Difference in machine hours
Difference in cost = Difference in machine hours × Slope coefficient
= 65000 × 0.75 = $48,750
98
In regression equation, an evaluation criteria considers significance of
Discuss
Answer & Solution
Answer: Option A
Solution:
In regression equation, an evaluation criteria considers significance of independent variable. An independent variable is the variable that is changed or controlled in a scientific experiment to test the effects on the dependent variable.
99
High-low method is used for estimation of
Discuss
Answer & Solution
Answer: Option C
Solution:
High-low method is used for estimation of slope coefficient. The slope coefficient usually refers to the coefficient of any independent variable, x, in a regression equation. It tells the amount of change in y that can be expected to result from a unit increase in x.
100
If all conditions or assumptions of regression analysis simple regression can give
Discuss
Answer & Solution
Answer: Option C
Solution:
If all conditions or assumptions of regression analysis simple regression can give reliable estimates. A measure is said to have a high reliability if it produces similar results under consistent conditions.