If the difference in costs is $16000 and the slope coefficient is 0.40, then difference in machine hours would be __________?
Correct answer: D. $40,000
- A. $50,000
- B. $5,400
- C. $6,400
- D. $40,000
Explanation
The slope coefficient equals change in cost divided by change in machine hours, so the hours difference is 16,000 ÷ 0.40 = 40,000 machine hours. The dollar sign shown beside the option is a unit-label error, but the intended numeric answer is clear.
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
In the specification analysis, the assumptions related to linearity states but linearity must be within ____________?
In adjustment issues of costing, the database must consider wide range values of __________?
The examples of nonlinear cost functions are _____________?
In plotting of cost functions, the level of activities according to which the charged cost is represented on ____________?
If an unexplained variation is 255050 and the total variation is 550505, then coefficient of determination will be ___________?
The cause and effect relationship that exists between change in total cost level and change in level of activity, is measured with the help of ___________?