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 _____________?
Correct answer: B. $200
- A. $16,000
- B. $200
- C. $400
- D. $20,000
Explanation
The slope coefficient equals the change in cost divided by the change in the cost driver: $8,000 ÷ 40 machine hours = $200 per machine hour.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The goodness of fit predicted values is also known as ___________?
In regression analysis, if the observed cost value is 62 and predicted cost value is 29, then the disturbance term would be ____________?
An assumption of specification analysis states: any observation does not belong to any other observation's residual value, is classified as ___________?
In step cost functions, the cost is increased by ____________?
In linear cost function, the fixed cost is considered as _________?
The strength of relationship between cost driver and cost is considered as __________?