The examples of nonlinear cost functions are _____________?
A. step constant functions B. step cost functions C. step price functions D. step object functions
Accounting MCQs with Answers
The situation in which two or more independent variables are highly correlated is known as ___________?
A. price linearity B. cost linearity C. division linearity D. multi-collinearity
The method which considers the lowest and highest values of cost driver and cost within relevant range is called ____________?
A. low high method B. constant equation C. variable equation D. high low method
In dependent variable cost pool, the relationship between individual cost items and cost drivers can be classified as ___________?
A. non homogeneous relationship B. homogeneous relationship C. an internal relationship D. an extreme relationship
The target annual operating income is divided with invested capital to calculate _____________?
A. target rate of return on investment B. operating income per unit C. operating cost per unit D. cost of goods sold
If the cost base is $350 and the markup component is 11% then prospective selling price will be __________?
A. 388.5 B. 350 C. 362 D. 368.5
An estimated cost per unit in long run, which enables the company to achieve it’s per unit target, operating income is classified as ___________?
A. target operating income per unit B. target cost per unit C. total current full cost D. total cost per unit
The target price is subtracted from per unit target operating income to calculate __________?
A. total current full cost B. total cost per unit C. target operating income per unit D. target cost per unit