The vertical difference, which measures distance between estimated and actual cost for every single observation is classified as __________?
A. residual term B. positive term C. negative term D. squared term
Accounting MCQs with Answers
The strength of relationship between cost driver and cost is considered as __________?
A. badness of residual B. goodness of residual C. badness of fit D. goodness of fit
In linear cost function, the fixed cost is considered as _________?
A. constant B. variable C. exponent D. base
In step cost functions, the cost is increased by ____________?
A. discrete amounts B. same amounts C. linear amounts D. nonlinear amounts
The goodness of fit predicted values is also known as ___________?
A. coefficient of determination B. coefficient of index C. coefficient of residual D. coefficient of prediction
An assumption of specification analysis states: any observation does not belong to any other observation’s residual value, is classified as ___________?
A. independence of residuals B. dependence of residuals C. independence of correlation D. none of the above
If the coefficients are similar for two accounting periods, then single cost relationship is estimated with the help of ___________?
A. data of fixed cost B. cost driver of data C. pool of data D. cost object of data