Costing

21. Fourth step in development of operating budget is to

choose alternatives
evaluate alternatives
efficiency improvements
predicted improvements

Detailed SolutionFourth step in development of operating budget is to

22. Large residual term and negative slope of line indicate

inverse proportion
direct proportion
badness proportions
goodness proportion

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

Detailed SolutionAn amount by which total cost changes with respect to change in level of activity is classified as

24. . . . . . . . . is the value of a benefit where no actual cost is incurred.

Imputed
Sunk
Out of pocket
None of these

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

Detailed SolutionAn assumption of specification analysis, which states all values of residuals which are uniformly scattered around regression line is classified as

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

Detailed SolutionInventory turnover ratio = Cost of inventory consumed during the period ÷ Cost of . . . . . . . . held during the period.

27. Costs of undertaken activities is to support individual products are known as

expected sustaining
input sustaining
output sustaining
product sustaining costs

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

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

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

Detailed SolutionIn regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be

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