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Cost Accounting
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Cost Accounting
The situation in which two or more independent variables are highly correlated is known as
price linearity
cost linearity
division linearity
multi-collinearity
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Cost Accounting
In cost terms, the direct manufacturing labor cost is included in
manufacturing costs
prime costs
conversion costs
both B and C
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Cost Accounting
Sunk costs are:
Relevant for decision making
Not relevant for decision making
Cost of incurred in future
Future costs
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Cost Accounting
The costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as
carrying costs
purchasing costs
stock-out costs
ordering costs
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Cost Accounting
The centers such as revenue, cost, investment and profit all are known as
marketing center
financial center
responsibility center
planning center
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Cost Accounting
Conversion cost includes cost of converting______into______:
Raw material, WIP
Raw material, Finished goods
WIP, Finished goods
Finished goods, Saleable goods
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Cost Accounting
If the change in variable costing in operating income is $18000 and contribution margin per unit is $9000, then change in sold units will be
$2 per unit
$3 per unit
$4 per unit
$5 per unit
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Cost Accounting
The relationship between change in activity and change in total costs is considered as
fixed relationship
cause and effect relationship
ineffective relationship
variable relationship
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Cost Accounting
In an accounting measurement, income and investment is divided to calculate
return on sales
investment turnover
residual income
return on investment
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Cost Accounting
An approach in which the company under-costs it’s one product and over-costs at least one product is classified as
service-cost across subsidizing
product-price cross subsidizing
product-cost cross subsidizing
product cross subsidizing
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