Detailed SolutionFourth step in development of operating budget is to
Costing
choose alternatives
evaluate alternatives
efficiency improvements
predicted improvements
Answer is Right!
Answer is Wrong!
22. Large residual term and negative slope of line indicate
inverse proportion
direct proportion
badness proportions
goodness proportion
Answer is Right!
Answer is Wrong!
Detailed SolutionLarge residual term and negative slope of line indicate
23. An amount by which total cost changes with respect to change in level of activity is classified as
activity coefficient
cost coefficient
change coefficient
slope coefficient
Answer is Right!
Answer is Wrong!
24. . . . . . . . . is the value of a benefit where no actual cost is incurred.
Imputed
Sunk
Out of pocket
None of these
Answer is Right!
Answer is Wrong!
Detailed Solution. . . . . . . . is the value of a benefit where no actual cost is incurred.
25. An assumption of specification analysis, which states all values of residuals which are uniformly scattered around regression line is classified as
abnormality of residuals
normality of regression
normality of residuals
abnormality of regression
Answer is Right!
Answer is Wrong!
26. Inventory turnover ratio = Cost of inventory consumed during the period ÷ Cost of . . . . . . . . held during the period.
average inventory
minimum inventory
maximum inventory
None of these
Answer is Right!
Answer is Wrong!
27. Costs of undertaken activities is to support individual products are known as
expected sustaining
input sustaining
output sustaining
product sustaining costs
Answer is Right!
Answer is Wrong!
Detailed SolutionCosts of undertaken activities is to support individual products are known as
28. Service costing is used in industries producing . . . . . . . .
products
service
Both A and B
None of these
Answer is Right!
Answer is Wrong!
Detailed SolutionService costing is used in industries producing . . . . . . . .
29. Master budget includes all projections of company’s budget and focuses on
serial correlation
marketing plan
financial plan
both B and C
Answer is Right!
Answer is Wrong!
Detailed SolutionMaster budget includes all projections of company’s budget and focuses on
30. In regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be
46
56
36
76
Answer is Right!
Answer is Wrong!