Cost Accounting MCQs

Option A: 3

Option B: 0.5003

Option C: 0.7003

Option D: 2

Correct Answer: 2 ✔

Option A: price linearity

Option B: cost linearity

Option C: division linearity

Option D: multi-collinearity

Correct Answer: cost linearity ✔

Option A: 95

Option B: 50

Option C: 120

Option D: 100

Correct Answer: 50 ✔

Option A: step constant functions

Option B: step cost functions

Option C: step price functions

Option D: step object functions

Correct Answer: step cost functions ✔

Option A: fixed object

Option B: cost driver

Option C: cost object

Option D: mixed object

Correct Answer: cost driver ✔

Option A: irrelevant range

Option B: relevant range

Option C: significant range

Option D: insignificant range

Correct Answer: relevant range ✔

Option A: $50,000

Option B: $5,400

Option C: $6,400

Option D: $40,000

Correct Answer: $40,000 ✔

Option A: x-axis

Option B: y-axis

Option C: unit axis

Option D: term axis

Correct Answer: x-axis ✔

Option A: 0.5063

Option B: 0.4633

Option C: 2.16

Option D: 0.5367

Correct Answer: 0.5367 ✔

Option A: production driver

Option B: cost driver

Option C: price driver

Option D: estimation driver

Correct Answer: cost driver ✔

Option A: 97

Option B: 57

Option C: 33

Option D: 53

Correct Answer: 33 ✔

Option A: 14

Option B: 88

Option C: 24

Option D: 68

Correct Answer: 88 ✔

Option A: quantitative analysis method

Option B: qualitative analysis method

Option C: account analysis method

Option D: conference analysis method

Correct Answer: quantitative analysis method ✔

Option A: units of labor

Option B: unit of production

Option C: time horizon

Option D: units of inventory

Correct Answer: time horizon ✔

Option A: contractual agreement

Option B: knowledge of operations

Option C: measureable unit relationship

Option D: all of above

Correct Answer: all of above ✔

Option A: d-value

Option B: c-value

Option C: t-value

Option D: b-value

Correct Answer: t-value ✔

Option A: zero

Option B: one

Option C: two

Option D: three

Correct Answer: zero ✔

Option A: mixed curve

Option B: experience curve

Option C: discrete curve

Option D: fixed curve

Correct Answer: experience curve ✔

Option A: evaluate variable driver

Option B: evaluate cost driver

Option C: evaluate price driver

Option D: evaluate demand driver

Correct Answer: evaluate cost driver ✔

Option A: all data points

Option B: One data point

Option C: Two data points

Option D: Four data points

Correct Answer: all data points ✔

Option A: related total costs

Option B: related fixed cost

Option C: related variable cost

Option D: related per unit cost

Correct Answer: related total costs ✔

Option A: 0.4528

Option B: 0.4783

Option C: 0.5216

Option D: 0.5425

Correct Answer: 0.5216 ✔

Option A: 110

Option B: 125

Option C: 60

Option D: 70

Correct Answer: 60 ✔

Option A: straight line

Option B: curved line

Option C: horizontal line

Option D: vertical line

Correct Answer: straight line ✔

Option A: fixed cost function

Option B: variable cost function

Option C: step variable cost function

Option D: step fixed cost function

Correct Answer: variable cost function ✔

Option A: higher repair cost

Option B: higher setup cost

Option C: lower repair cost

Option D: higher setup cost

Correct Answer: higher repair cost ✔

Option A: 2.571

Option B: 0.39

Option C: 0.2571

Option D: 3.39

Correct Answer: 0.39 ✔

Option A: data of fixed cost

Option B: cost driver of data

Option C: pool of data

Option D: cost object of data

Correct Answer: pool of data ✔

Option A: 100

Option B: 25

Option C: 50

Option D: 75

Correct Answer: 75 ✔

Option A: independence of residuals

Option B: dependence of residuals

Option C: independence of correlation

Option D: none of the above

Correct Answer: independence of residuals ✔

Option A: 33

Option B: 91

Option C: 81

Option D: 43

Correct Answer: 33 ✔

Option A: coefficient of determination

Option B: coefficient of index

Option C: coefficient of residual

Option D: coefficient of prediction

Correct Answer: coefficient of determination ✔

Option A: $16,000

Option B: $200

Option C: $400

Option D: $20,000

Correct Answer: $200 ✔

Option A: discrete amounts

Option B: same amounts

Option C: linear amounts

Option D: nonlinear amounts

Correct Answer: discrete amounts ✔

Option A: constant

Option B: variable

Option C: exponent

Option D: base

Correct Answer: constant ✔

Option A: badness of residual

Option B: goodness of residual

Option C: badness of fit

Option D: goodness of fit

Correct Answer: goodness of fit ✔

Option A: residual term

Option B: positive term

Option C: negative term

Option D: squared term

Correct Answer: residual term ✔

Option A: U=A-b

Option B: u=A-a

Option C: u=Y-y

Option D: u=X-x

Correct Answer: u=Y-y ✔

Option A: higher setup cost

Option B: lower repair cost

Option C: higher setup cost

Option D: higher repair cost

Correct Answer: lower repair cost ✔

Option A: variance of residuals is constant

Option B: variance of goodness is constant

Option C: goodness of fit is constant

Option D: standard error is constant

Correct Answer: variance of residuals is constant ✔

Option A: incremental unit time learning model

Option B: incremental price learning model

Option C: incremental unit average model

Option D: incremental cost learning model

Correct Answer: incremental unit time learning model ✔

Option A: linear coefficient

Option B: cost coefficient

Option C: slope coefficient

Option D: price coefficient

Correct Answer: slope coefficient ✔

Option A: $86,667

Option B: $48,750

Option C: $85,000

Option D: $55,000

Correct Answer: $86,667 ✔

Option A: x-axis at one

Option B: y-axis at constant

Option C: x-axis at constant

Option D: y-axis at one

Correct Answer: y-axis at constant ✔

Option A: cost object hierarchy

Option B: management hierarchy

Option C: price hierarchy

Option D: cost hierarchy

Correct Answer: cost hierarchy ✔

Option A: price index

Option B: cost index

Option C: profit index

Option D: cost driver index

Correct Answer: price index ✔

Option A: goodness of each activity

Option B: handling of each activity

Option C: cost driver for each activity

Option D: cost object for each activity

Correct Answer: cost driver for each activity ✔

Option A: discrete curve

Option B: fixed curve

Option C: mixed curve

Option D: experience curve

Correct Answer: experience curve ✔

Option A: real price data

Option B: real cost data

Option C: multiplier data

Option D: divisional data

Correct Answer: real cost data ✔

Option A: plotting the data

Option B: plotting the costs

Option C: plotting the cost drivers

Option D: plotting curved line

Correct Answer: plotting the data ✔

Option A: 57

Option B: 43

Option C: 67

Option D: 47

Correct Answer: 43 ✔

Option A: worst

Option B: independent

Option C: dependent

Option D: good

Correct Answer: independent ✔

Option A: incremental unit average model

Option B: incremental cost learning model

Option C: incremental unit time learning model

Option D: incremental price learning model

Correct Answer: incremental unit time learning model ✔

Option A: cost estimation

Option B: price estimation

Option C: unit estimation

Option D: production estimation

Correct Answer: cost estimation ✔

Option A: step price functions

Option B: step object functions

Option C: step constant functions

Option D: step cost functions

Correct Answer: step cost functions ✔

Option A: marketing and financing

Option B: price and costs

Option C: input and output

Option D: units and batches

Correct Answer: input and output ✔

Option A: coefficient of residual

Option B: coefficient of prediction

Option C: coefficient of determination

Option D: coefficient of index

Correct Answer: coefficient of determination ✔

Option A: badness proportions

Option B: goodness proportion

Option C: inversely proportion

Option D: directly proportion

Correct Answer: directly proportion ✔

Option A: decrease in variance

Option B: increase in variance error

Option C: increase in standard error

Option D: decrease in standard error

Correct Answer: increase in standard error ✔

Option A: homogenous

Option B: homoscedasticity

Option C: heteroscedasticity

Option D: heterogeneous

Correct Answer: homoscedasticity ✔

Option A: cumulative average time learning model

Option B: cumulative mean learning model

Option C: cumulative weighted learning model

Option D: cumulative average pricing model

Correct Answer: cumulative average time learning model ✔

Option A: $68,700

Option B: $58,700

Option C: $30,000

Option D: $83,333.34

Correct Answer: $30,000 ✔

Option A: estimate cost function

Option B: estimate price function

Option C: estimate supply function

Option D: estimate demand function

Correct Answer: estimate cost function ✔

Option A: unit axis

Option B: term axis

Option C: x-axis

Option D: y-axis

Correct Answer: y-axis ✔

Option A: nonlinear cost function

Option B: linear cost function

Option C: linear price function

Option D: nonlinear price function

Correct Answer: nonlinear cost function ✔

Option A: irrelevant range of linearity

Option B: relevant range of linearity

Option C: significant range

Option D: insignificant range

Correct Answer: relevant range of linearity ✔

Option A: cost estimation methods

Option B: price estimation methods

Option C: unit estimation method

Option D: variable estimation method

Correct Answer: cost estimation methods ✔

Option A: fixed cost

Option B: constant

Option C: variable

Option D: both a and b

Correct Answer: fixed cost ✔

Option A: constant

Option B: variable

Option C: expression

Option D: base and exponent

Correct Answer: constant ✔

Option A: cost function

Option B: revenue function

Option C: unit function

Option D: relative function

Correct Answer: cost function ✔

Option A: activity based costing

Option B: margin based costing

Option C: goodness of costing

Option D: handling based costing

Correct Answer: activity based costing ✔

Option A: parallel correlation

Option B: serial correlation

Option C: auto correlation

Option D: both B and C

Correct Answer: both B and C ✔

Option A: average of coefficient

Option B: variance of residual

Option C: mean of residual

Option D: average of residual

Correct Answer: variance of residual ✔

Option A: manufacturing analysis method

Option B: price analysis method

Option C: unit analysis method

Option D: account analysis method

Correct Answer: account analysis method ✔

Option A: One variable series

Option B: multiple regression

Option C: simple regression

Option D: Two way regression

Correct Answer: multiple regression ✔

Option A: choose independent variable

Option B: choose cost estimation method

Option C: choose price estimation method

Option D: choose dependent variable

Correct Answer: choose independent variable ✔

Option A: simple regression

Option B: Two way regression

Option C: One variable series

Option D: multiple regression

Correct Answer: simple regression ✔

Option A: independent variable

Option B: function variable

Option C: evaluation variable

Option D: estimation variable

Correct Answer: independent variable ✔

Option A: activity coefficient

Option B: cost coefficient

Option C: change coefficient

Option D: slope coefficient

Correct Answer: slope coefficient ✔

Option A: fixed cost driver

Option B: cost driver and cost

Option C: cost driver and object

Option D: mixed cost driver

Correct Answer: cost driver and cost ✔

Option A: variable equation

Option B: high low method

Option C: low high method

Option D: constant equation

Correct Answer: high low method ✔

Option A: 0.7

Option B: 0.6

Option C: 0.5

Option D: 0.4

Correct Answer: 0.7 ✔

Option A: general ledger

Option B: non-achievable

Option C: non measureable

Option D: economically plausible

Correct Answer: economically plausible ✔

Option A: cost driver and cost

Option B: cost object and cost

Option C: heterogeneous cost

Option D: homogenous cost

Correct Answer: cost driver and cost ✔

Option A: conference method

Option B: inference method

Option C: pricing method

Option D: manufacturing method

Correct Answer: conference method ✔

Option A: values of a and b

Option B: values of x and y

Option C: values of a and x

Option D: values of b and y

Correct Answer: values of a and b ✔

Option A: times series method

Option B: time horizon method

Option C: aggression method

Option D: regression method

Correct Answer: regression method ✔

Option A: negative square technique

Option B: positive square technique

Option C: least square technique

Option D: most square technique

Correct Answer: least square technique ✔

Option A: variable residual terms

Option B: smaller residual terms

Option C: larger residual terms

Option D: zero residual terms

Correct Answer: smaller residual terms ✔

Option A: weighted analysis

Option B: average analysis

Option C: significance analysis

Option D: specification analysis

Correct Answer: specification analysis ✔

Option A: standard error of estimated coefficient

Option B: weighted error of estimated coefficient

Option C: average of estimated coefficient

Option D: variance of estimated coefficient

Correct Answer: standard error of estimated coefficient ✔

Option A: $1,200

Option B: $1,400

Option C: $1,600

Option D: $1,800

Correct Answer: $1,200 ✔

Option A: price engineering method

Option B: industrial engineering method

Option C: measuring engineering method

Option D: unit engineering method

Correct Answer: industrial engineering method ✔

Option A: larger residual terms

Option B: zero residual terms

Option C: variable residual terms

Option D: smaller residual terms

Correct Answer: larger residual terms ✔

Option A: cumulative average time learning model

Option B: incremental unit time learning model

Option C: incremental production learning model

Option D: both a and b

Correct Answer: both a and b ✔

Option A: $800

Option B: $400

Option C: $300

Option D: $600

Correct Answer: $300 ✔

Option A: 1.24

Option B: 0.24

Option C: 0.6

Option D: 1.667

Correct Answer: 0.6 ✔

Option A: demand allocation base

Option B: supply allocation base

Option C: cost allocation base

Option D: price allocation base

Correct Answer: cost allocation base ✔

Option A: cost and cost object

Option B: price and cost driver

Option C: dependent variable and cost driver

Option D: independent variable and cost driver

Correct Answer: dependent variable and cost driver ✔

Option A: level of activity

Option B: quantity stored

Option C: quantity manufactured

Option D: quality of product

Correct Answer: level of activity ✔