If the difference between costs linked to highest and lowest observation of cost driver is $27000 and observation of cost driver is 90 machine hours, then slope coefficient would be ____________?
Correct answer: C. $300
- A. $800
- B. $400
- C. $300
- D. $600
Explanation
The slope coefficient is the cost change per machine hour: $27,000 ÷ 90 = $300 per hour. This makes option c correct.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
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 learning curve models include ___________?
The worse fit between estimated cost and actual observations is shown on regression line with ___________?
The work measurement method of cost estimation is also called ___________?
If the difference in costs is $9000 and the difference in machine hours is $15000, then slope coefficient would be ___________?
In a given scenario, if the cost is considered as indirect cost then independent variable will be considered as _________?
The third step in estimation of cost function, by using quantitative analysis is collection of data for ___________?