Costing - Study Mode

[#1186] For printing of wedding invitation card the most appropriate costing system is
Correct Answer

(D) Job costing

[#1187] An opportunity cost is . . . . . . . .
Correct Answer

(A) the advantage foregone

[#1188] . . . . . . . . Accounting provides information for cost control.
Correct Answer

(B) Cost

[#1189] If difference between costs linked to highest and lowest observation of cost driver is $36000 and observation of cost driver is 30 machine hours, then slope coefficient would be
Correct Answer

(A) $1,200

Explanation

Solution: Slope coefficient = Difference between costs linked to highest and lowest observation of cost driver ÷ Observation of cost driver = $36000 ÷ 30 = $1,200

[#1190] In quantitative analysis of estimating cost function, last and foremost step is to
Correct Answer

(B) evaluate cost driver

Explanation

Solution: In quantitative analysis of estimating cost function, last and foremost step is to evaluate evaluate cost driver. A cost driver is the unit of an activity that causes the change in activity's cost.