Costing

11. Responsibility Centre can be categorised into:

Cost Centres only
Profit Centres only
Investment Centres only
Cost Centres, Profit Centres and Investment Centres

Detailed SolutionResponsibility Centre can be categorised into:

12. Cost that has elements of variable and fixed costs at same time is

variable cost
mixed cost
semi variable cost
Both B and C

Detailed SolutionCost that has elements of variable and fixed costs at same time is

13. If difference between costs linked to highest and lowest observation of cost driver is $8000 and observation of cost driver is 40 machine hours, then slope coefficient will be

$16,000
$200
$400
$20,000

Detailed SolutionIf difference between costs linked to highest and lowest observation of cost driver is $8000 and observation of cost driver is 40 machine hours, then slope coefficient will be

14. The formula $$\frac{{\text{Q}}}{2}$$ is used to compute the:

Total ordering cost
Total carrying cost
Opportunity cost
Re-order point

Detailed SolutionThe formula $$\frac{{\text{Q}}}{2}$$ is used to compute the:

15. Number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate

annual irrelevant ordering costs
annual relevant carrying costs
annual relevant ordering costs
annual irrelevant carrying costs

Detailed SolutionNumber of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate

16. Cost accounting differs from financial accounting in respect of ________.

reporting of cost
ascertainment of cost
control of cost
recording of cost

Detailed SolutionCost accounting differs from financial accounting in respect of ________.

17. In assumptions testing, violation of constant variance is called

heteroscedasticity
heterogeneous
homogenous
homoscedasticity

Detailed SolutionIn assumptions testing, violation of constant variance is called

18. Sale of defectives is reduced from ________.

prime cost
works cost
cost of production
cost of sales

Detailed SolutionSale of defectives is reduced from ________.

19. Net realizable value is added into separate costs to calculate

split off costs
final cost of direct labour
final sales
final costs

Detailed SolutionNet realizable value is added into separate costs to calculate

20. The loss which arise in manufacturing activity on account of inherent nature of the product is ________.

normal loss
abnormal loss
net loss
gross loss

Detailed SolutionThe loss which arise in manufacturing activity on account of inherent nature of the product is ________.

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