Costing - Study Mode
[#1191] Work measurement method of cost estimation is also called
Correct Answer
(B) industrial engineering method
Explanation
Solution: Work measurement method of cost estimation is also called industrial engineering method. Industrial engineering method is a physical way of examining the relationship between cost drivers and costs by analyzing the inputs coming into the company, the outputs that are created, and the work that goes into the process.
[#1192] Function which is used to measure decline in per unit cost of different business functions is classified as
Correct Answer
(B) experience curve
Explanation
Solution: Function which is used to measure decline in per unit cost of different business functions is classified as 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.
[#1193] Worse fit between estimated cost and actual observations is shown on regression line with
Correct Answer
(A) larger residual terms
Explanation
Solution: Worse fit between estimated cost and actual observations is shown on regression line with larger residual terms.
[#1194] Slope coefficient of linear cost function is
Correct Answer
(A) zero
Explanation
Solution: Slope coefficient of linear cost function is zero.
[#1195] Learning curve models include
Correct Answer
(D) both a and b
Explanation
Solution: Learning curve models include cumulative average time learning model and incremental unit time learning model.