Cost Accounting MCQs

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: variable cost

Option B: mixed cost

Option C: semi variable cost

Option D: Both B and C

Correct Answer: Both B and C ✔

Option A: $80,000

Option B: $12,800

Option C: $70,000

Option D: $22,800

Correct Answer: $80,000 ✔

Option A: fixed curve

Option B: learning curve

Option C: linear curve

Option D: mixed curve

Correct Answer: learning curve ✔

Option A: predicted fixed cost

Option B: predicted variable cost

Option C: predicted cost

Option D: predicted price

Correct Answer: predicted cost ✔

Option A: 46

Option B: 56

Option C: 36

Option D: 76

Correct Answer: 46 ✔

Option A: pricing method

Option B: manufacturing method

Option C: conference method

Option D: inference method

Correct Answer: conference method ✔

Option A: 55

Option B: 15

Option C: 65

Option D: 85

Correct Answer: 55 ✔

Option A: has meaning

Option B: has no meaning

Option C: has index values

Option D: has no index values

Correct Answer: has meaning ✔

Option A: choose price estimation method

Option B: choose dependent variable

Option C: choose independent variable

Option D: choose revenue estimation method

Correct Answer: choose dependent variable ✔

Option A: heterogeneous relationship

Option B: extreme relationship

Option C: no homogeneous relationship

Option D: homogeneous relationship

Correct Answer: homogeneous relationship ✔

Option A: cost representation

Option B: irrelevant range

Option C: relevant range

Option D: graphical representation

Correct Answer: relevant range ✔

Option A: t-value

Option B: b-value

Option C: d-value

Option D: c-value

Correct Answer: t-value ✔

Option A: time horizons are long

Option B: time horizons are short

Option C: time horizons are irrelevant

Option D: time horizons are relevant

Correct Answer: time horizons are long ✔

Option A: economic series

Option B: financial series

Option C: time series

Option D: analytical series

Correct Answer: time series ✔

Option A: error term

Option B: disturbance term

Option C: relevant term

Option D: both a and b

Correct Answer: both a and b ✔

Option A: dependent estimation

Option B: independent estimation

Option C: reliable estimates

Option D: unreliable estimates

Correct Answer: reliable estimates ✔

Option A: independent variable

Option B: dependent variable

Option C: significance plotting

Option D: insignificance plotting

Correct Answer: independent variable ✔

Option A: actual values

Option B: predicted values

Option C: residual values

Option D: indexed values

Correct Answer: predicted values ✔

Option A: marginal plausibility

Option B: economic plausibility

Option C: financial plausibility

Option D: market plausibility

Correct Answer: economic plausibility ✔

Option A: heteroscedasticity

Option B: heterogeneous

Option C: homogenous

Option D: homoscedasticity

Correct Answer: heteroscedasticity ✔

Option A: cyclical factors

Option B: indexed technique

Option C: price estimation

Option D: cost estimation

Correct Answer: cost estimation ✔

Option A: degree of possibility

Option B: degree of average

Option C: degree of variance

Option D: degree of freedom

Correct Answer: degree of freedom ✔

Option A: fixed terms

Option B: indexed terms

Option C: variable terms

Option D: residual terms

Correct Answer: residual terms ✔

Option A: unit estimation

Option B: production estimation

Option C: cost estimation

Option D: price estimation

Correct Answer: cost estimation ✔

Option A: functional range

Option B: relevant range

Option C: unit range

Option D: related range

Correct Answer: relevant range ✔

Option A: continuously variable cost function

Option B: fixed cost function

Option C: mixed cost function

Option D: semi variable cost function

Correct Answer: continuously variable cost function ✔

Option A: stationary

Option B: not stationary

Option C: intrinsic

Option D: extrinsic

Correct Answer: stationary ✔

Option A: abnormality of residuals

Option B: normality of regression

Option C: normality of residuals

Option D: abnormality of regression

Correct Answer: normality of residuals ✔

Option A: variable technique

Option B: least square technique

Option C: indexed technique

Option D: fixed technique

Correct Answer: least square technique ✔

Option A: curved

Option B: slightly sloped

Option C: completely sloped

Option D: dotted

Correct Answer: slightly sloped ✔

Option A: non expression

Option B: non constant

Option C: objective

Option D: non objective

Correct Answer: objective ✔

Option A: inverse proportion

Option B: direct proportion

Option C: badness proportions

Option D: goodness proportion

Correct Answer: inverse proportion ✔

Option A: write a liner function

Option B: write price function

Option C: write manufacturing function

Option D: plot the data

Correct Answer: plot the data ✔

Option A: goodness of fit

Option B: economic plausibility

Option C: significance of independent variable

Option D: all of above

Correct Answer: all of above ✔

Option A: disadvantage of low high method

Option B: disadvantage of high low method

Option C: advantage of high low method

Option D: advantage of low high method

Correct Answer: disadvantage of high low method ✔

Option A: $3,000

Option B: $300

Option C: $4,700

Option D: $4,500

Correct Answer: $300 ✔

Option A: customer sustaining costs

Option B: customer output unit-level costs

Option C: customer batch-level costs

Option D: corporate sustaining costs

Correct Answer: customer output unit-level costs ✔

Option A: indirect cost

Option B: partial cost

Option C: benchmark cost

Option D: direct cost

Correct Answer: indirect cost ✔

Option A: sales mix variance

Option B: sales volume variance

Option C: flexible budget variance

Option D: static budget variance

Correct Answer: static budget variance ✔

Option A: customer level indirect costs

Option B: customer level direct costs

Option C: corporate level direct costs

Option D: corporate level indirect costs

Correct Answer: customer level indirect costs ✔

Option A: $7,500

Option B: $6,500

Option C: $1,000

Option D: $10,000

Correct Answer: $1,000 ✔

Option A: customer sustaining costs

Option B: customer output unit-level costs

Option C: customer batch-level costs

Option D: corporate sustaining costs

Correct Answer: customer batch-level costs ✔

Option A: sales mix variance

Option B: sales volume variance

Option C: flexible budget variance

Option D: static budget variance

Correct Answer: sales volume variance ✔

Option A: human resource management costs

Option B: corporate administration costs

Option C: treasury costs

Option D: discretionary costs

Correct Answer: corporate administration costs ✔

Option A: sales volume variance

Option B: sales mix variance

Option C: sales quantity variance

Option D: market share variance

Correct Answer: sales volume variance ✔

Option A: discretionary channel costs

Option B: corporate-sustaining costs

Option C: distribution-channel costs

Option D: engineered resource costs

Correct Answer: distribution-channel costs ✔

Option A: sales mix variance

Option B: sales volume variance

Option C: flexible budget variance

Option D: static budget variance

Correct Answer: flexible budget variance ✔

Option A: discretionary channel costs

Option B: corporate-sustaining costs

Option C: distribution-channel costs

Option D: customer-sustaining costs

Correct Answer: customer-sustaining costs ✔

Option A: discretionary channel costs

Option B: corporate-sustaining costs

Option C: distribution-channel costs

Option D: engineered resource costs

Correct Answer: corporate-sustaining costs ✔

Option A: human resource management costs

Option B: corporate administration costs

Option C: treasury costs

Option D: discretionary costs

Correct Answer: discretionary costs ✔

Option A: customer cost hierarchy

Option B: customer profitability hierarchy

Option C: treasury costing hierarchy

Option D: partial costing hierarchy

Correct Answer: customer cost hierarchy ✔

Option A: partial productivity analysis

Option B: treasury cost analysis

Option C: customer profitability analysis

Option D: customer cost analysis

Correct Answer: customer profitability analysis ✔

Option A: treasury costs

Option B: discretionary costs

Option C: human resource management costs

Option D: corporate administration costs

Correct Answer: treasury costs ✔

Option A: $8,000

Option B: $80,000

Option C: $62,000

Option D: $35,000

Correct Answer: $8,000 ✔

Option A: partial discount

Option B: corporate discount

Option C: treasury discount

Option D: price discount

Correct Answer: price discount ✔

Option A: $2,500

Option B: $5,500

Option C: $3,500

Option D: $2,000

Correct Answer: $2,000 ✔

Option A: indirect costs

Option B: variable costs

Option C: fixed costs

Option D: direct costs

Correct Answer: fixed costs ✔

Option A: $6,500

Option B: $6,600

Option C: $6,700

Option D: $6,800

Correct Answer: $6,500 ✔

Option A: sales quantity variance

Option B: cost mix variance

Option C: volume mix variance

Option D: sales mix variance

Correct Answer: sales mix variance ✔

Option A: $6,200

Option B: $1,700

Option C: $17,000

Option D: $4,500

Correct Answer: $1,700 ✔

Option A: discretionary costs

Option B: human resource management costs

Option C: corporate administration costs

Option D: treasury costs

Correct Answer: human resource management costs ✔

Option A: discretionary channel costs

Option B: corporate-sustaining costs

Option C: distribution-channel costs

Option D: customer-sustaining costs

Correct Answer: customer-sustaining costs ✔

Option A: $3,000

Option B: $300

Option C: $4,700

Option D: $4,500

Correct Answer: $300 ✔

Option A: customer sustaining costs

Option B: customer output unit-level costs

Option C: customer batch-level costs

Option D: corporate sustaining costs

Correct Answer: customer output unit-level costs ✔

Option A: human resource management costs

Option B: corporate administration costs

Option C: treasury costs

Option D: discretionary costs

Correct Answer: discretionary costs ✔

Option A: customer cost hierarchy

Option B: customer profitability hierarchy

Option C: treasury costing hierarchy

Option D: partial costing hierarchy

Correct Answer: customer cost hierarchy ✔

Option A: partial productivity analysis

Option B: treasury cost analysis

Option C: customer profitability analysis

Option D: customer cost analysis

Correct Answer: customer profitability analysis ✔

Option A: sales mix variance

Option B: sales volume variance

Option C: flexible budget variance

Option D: static budget variance

Correct Answer: static budget variance ✔

Option A: $8,000

Option B: $80,000

Option C: $62,000

Option D: $35,000

Correct Answer: $8,000 ✔

Option A: discretionary costs

Option B: human resource management costs

Option C: corporate administration costs

Option D: treasury costs

Correct Answer: human resource management costs ✔

Option A: partial discount

Option B: corporate discount

Option C: treasury discount

Option D: price discount

Correct Answer: price discount ✔

Option A: $2,500

Option B: $5,500

Option C: $3,500

Option D: $2,000

Correct Answer: $2,000 ✔

Option A: indirect costs

Option B: variable costs

Option C: fixed costs

Option D: direct costs

Correct Answer: fixed costs ✔

Option A: $6,500

Option B: $6,600

Option C: $6,700

Option D: $6,800

Correct Answer: $6,500 ✔

Option A: sales quantity variance

Option B: cost mix variance

Option C: volume mix variance

Option D: sales mix variance

Correct Answer: sales mix variance ✔

Option A: $6,200

Option B: $1,700

Option C: $17,000

Option D: $4,500

Correct Answer: $1,700 ✔

Option A: sales mix variance

Option B: sales volume variance

Option C: flexible budget variance

Option D: static budget variance

Correct Answer: flexible budget variance ✔

Option A: discretionary channel costs

Option B: corporate-sustaining costs

Option C: distribution-channel costs

Option D: engineered resource costs

Correct Answer: distribution-channel costs ✔

Option A: sales volume variance

Option B: sales mix variance

Option C: sales quantity variance

Option D: market share variance

Correct Answer: sales volume variance ✔

Option A: human resource management costs

Option B: corporate administration costs

Option C: treasury costs

Option D: discretionary costs

Correct Answer: corporate administration costs ✔

Option A: sales mix variance

Option B: sales volume variance

Option C: flexible budget variance

Option D: static budget variance

Correct Answer: sales volume variance ✔

Option A: customer sustaining costs

Option B: customer output unit-level costs

Option C: customer batch-level costs

Option D: corporate sustaining costs

Correct Answer: customer batch-level costs ✔

Option A: $7,500

Option B: $6,500

Option C: $1,000

Option D: $10,000

Correct Answer: $1,000 ✔

Option A: customer level indirect costs

Option B: customer level direct costs

Option C: corporate level direct costs

Option D: corporate level indirect costs

Correct Answer: customer level indirect costs ✔

Option A: treasury costs

Option B: discretionary costs

Option C: human resource management costs

Option D: corporate administration costs

Correct Answer: treasury costs ✔

Option A: indirect cost

Option B: partial cost

Option C: benchmark cost

Option D: direct cost

Correct Answer: indirect cost ✔

Option A: discretionary channel costs

Option B: corporate-sustaining costs

Option C: distribution-channel costs

Option D: engineered resource costs

Correct Answer: corporate-sustaining costs ✔

Option A: 0.475% per year

Option B: 4.475% per year

Option C: 3.475% per year

Option D: 2.475% per year

Correct Answer: 2.475% per year ✔

Option A: negative net present value

Option B: zero net present value

Option C: positive net present value

Option D: both b and c

Correct Answer: both b and c ✔

Option A: vertical cash flows

Option B: discounted cash flows

Option C: lean cash flows

Option D: future cash flows

Correct Answer: discounted cash flows ✔

Option A: increase in operating income

Option B: average investment over five years

Option C: average capital invested

Option D: average rate of return

Correct Answer: average investment over five years ✔

Option A: net present value

Option B: net future value

Option C: net discounted value

Option D: net recorded cash value

Correct Answer: net present value ✔

Option A: nominal rate of return

Option B: accrual accounting rate of return

Option C: real rate of return

Option D: required rate of return

Correct Answer: real rate of return ✔

Option A: cash value of money

Option B: net initial investment

Option C: net future value

Option D: time value of money

Correct Answer: net initial investment ✔

Option A: horizontally across dimension

Option B: horizontally upward dimension

Option C: vertically upward dimension

Option D: both a and c

Correct Answer: both a and c ✔

Option A: nominal rate of return

Option B: accrual accounting rate of return

Option C: real rate of return

Option D: required rate of return

Correct Answer: nominal rate of return ✔

Option A: net value cash flow method

Option B: payback method

Option C: single cash flow method

Option D: lean cash flow method

Correct Answer: payback method ✔

Option A: $10,511,000

Option B: $12,105,000

Option C: $1,100,000

Option D: $11,000,000

Correct Answer: $11,000,000 ✔

Option A: 13.75%

Option B: 11.65%

Option C: 12.50%

Option D: 13.50%

Correct Answer: 12.50% ✔