Specification Analysis : Estimation Assumptions MCQ (Multiple Choice Questions) PDF - 98

MCQ 486: A problem which arises because of the presence of systematic pattern in residual value sequence is considered as

1. parallel correlation
2. serial correlation
3. auto correlation
4. both B and C

MCQ 487: The static budget amount is subtracted from the flexible budget amount to calculate the

1. sales budget variance
2. cost budget variance
3. resultant budget variance
4. static budget variance

MCQ 488: If the difference between costs linked to highest and lowest observation of cost driver, is $8000 and observation of cost driver is 40 machine hours, then slope coefficient will be

1. $16,000
2. $200
3. $400
4. $20,000

MCQ 489: If an actual manufacturing overhead costs is $225000 and actual total quantity of cost allocation base is 2500 labor hours, then the overhead rate will be

1. $60
2. $90
3. $80
4. $70

MCQ 490: The gross margin is $7000 and the revenues are $16000, then the cost of goods sold would be

1. $23,000
2. −$23000
3. −$9000
4. $9,000