Costing - Study Mode

[#856] In assumptions of specific analysis, normality of residuals is satisfied with use of
Correct Answer

(B) real cost data

Explanation

Solution: In assumptions of specific analysis, normality of residuals is satisfied with use of real cost data.

[#857] In quantitative analysis to estimate cost function, fourth step is to
Correct Answer

(D) plot data

Explanation

Solution: In quantitative analysis to estimate cost function, fourth step is to plot data.

[#858] A concept used to define learning curve in broader application is called
Correct Answer

(D) experience curve

Explanation

Solution: A concept used to define learning curve in broader application is called experience curve. Experience curve refers to a diagrammatic representation of the inverse relationship between the total value-added costs of a product and the company experience in manufacturing and marketing it.

[#859] Large residual term and negative slope of line indicate
Correct Answer

(A) inverse proportion

Explanation

Solution: Large residual term and negative slope of line indicate inverse proportion.

[#860] Success of cost reduction initiatives are evaluated by accurate
Correct Answer

(D) cost estimation

Explanation

Solution: Success of cost reduction initiatives are evaluated by accurate cost estimation. A cost estimate is the approximation of the cost of a program, project, or operation. The cost estimate is the product of the cost estimating process.