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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-9 section-4

Each section contains 100 MCQs on Costing .
81
In assumptions of specific analysis, normality of residuals is satisfied with use of
Discuss
Answer & Solution
Answer: Option B
Solution:
In assumptions of specific analysis, normality of residuals is satisfied with use of real cost data.
82
In quantitative analysis to estimate cost function, fourth step is to
Discuss
Answer & Solution
Answer: Option D
Solution:
In quantitative analysis to estimate cost function, fourth step is to plot data.
83
A concept used to define learning curve in broader application is called
Discuss
Answer & Solution
Answer: Option D
Solution:
A concept used to define learning curve in broader application is called experience curve. Experience curve refers to a diagrammatic representation of the inverse relationship between the total value-added costs of a product and the company experience in manufacturing and marketing it.
84
Large residual term and negative slope of line indicate
Discuss
Answer & Solution
Answer: Option A
Solution:
Large residual term and negative slope of line indicate inverse proportion.
85
Success of cost reduction initiatives are evaluated by accurate
Discuss
Answer & Solution
Answer: Option D
Solution:
Success of cost reduction initiatives are evaluated by accurate cost estimation. A cost estimate is the approximation of the cost of a program, project, or operation. The cost estimate is the product of the cost estimating process.
86
Which one of following is main advantage of quantitative method?
Discuss
Answer & Solution
Answer: Option C
Solution:
Objective is main advantage of quantitative method. Generally, quantitative methods are designed to provide summaries of data that support generalisations about the phenomenon under study.
87
An implementation of activity based costing would be possible only if accountants find
Discuss
Answer & Solution
Answer: Option C
Solution:
An implementation of activity based costing would be possible only if accountants find cost driver for each activity. A cost driver is the unit of an activity that causes the change in activity's cost. cost driver is any factor which causes a change in the cost of an activity.
88
In assumptions testing, violation of constant variance is called
Discuss
Answer & Solution
Answer: Option A
Solution:
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.
89
In cause and effect relationship between cost level and cost driver, inflationary price effects are removed by dividing cost through
Discuss
Answer & Solution
Answer: Option A
Solution:
In cause and effect relationship between cost level and cost driver, inflationary price effects are removed by dividing cost through price index. A price index is a normalized average (typically a weighted average) of price relatives for a given class of goods or services in a given region, during a given interval of time.
90
Weak relationship between cost and cost driver is indicated on a regression line, which is
Discuss
Answer & Solution
Answer: Option B
Solution:
Weak relationship between cost and cost driver is indicated on a regression line, which is slightly sloped.