Costing - Study Mode

[#756] Slope coefficient is 0.75 and difference in machine hours is 65000 then difference in cost would be
Correct Answer

(B) $48,750

Explanation

Solution: Slope coefficient = Difference in costs ÷ Difference in machine hours Difference in cost = Difference in machine hours × Slope coefficient = 65000 × 0.75 = $48,750

[#757] In regression equation, an evaluation criteria considers significance of
Correct Answer

(A) independent variable

Explanation

Solution: In regression equation, an evaluation criteria considers significance of independent variable. An independent variable is the variable that is changed or controlled in a scientific experiment to test the effects on the dependent variable.

[#758] High-low method is used for estimation of
Correct Answer

(C) slope coefficient

Explanation

Solution: High-low method is used for estimation of slope coefficient. The slope coefficient usually refers to the coefficient of any independent variable, x, in a regression equation. It tells the amount of change in y that can be expected to result from a unit increase in x.

[#759] If all conditions or assumptions of regression analysis simple regression can give
Correct Answer

(C) reliable estimates

Explanation

Solution: If all conditions or assumptions of regression analysis simple regression can give reliable estimates. A measure is said to have a high reliability if it produces similar results under consistent conditions.

[#760] Number of worker employed is used as basis for the apportionment of ________.
Correct Answer

(B) canteen expenses

Explanation

Solution: Number of worker employed is used as basis for the apportionment of canteen expenses.