All Free Accounting MCQs with Answers
Every Accounting question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.
1,971 questions · page 61 of 99
- A. badness proportions
- B. goodness proportion
- C. inversely proportion
- D. directly proportion
Explanation: A positive slope shows that the dependent cost rises as the independent activity measure rises, indicating a direct relationship.
Correct answer: directly proportion- A. decrease in variance
- B. increase in variance error
- C. increase in standard error
- D. decrease in standard error
Explanation: Multicollinearity makes it difficult to separate the effects of correlated independent variables, so the variance of their estimated…
Correct answer: increase in standard error- A. homogenous
- B. homoscedasticity
- C. heteroscedasticity
- D. heterogeneous
Explanation: Constant variance of the errors is called homoscedasticity, from the idea of equal spread across observations.
Correct answer: homoscedasticity- A. cumulative average time learning model
- B. cumulative mean learning model
- C. cumulative weighted learning model
- D. cumulative average pricing model
Explanation: The cumulative average-time learning model assumes that each time cumulative output doubles, cumulative average time per unit falls by a…
Correct answer: cumulative average time learning model- A. $68,700
- B. $58,700
- C. $30,000
- D. $83,333.34
Explanation: The slope coefficient represents cost per machine hour, so the cost change is 0.60 × 50,000 = $30,000.
Correct answer: $30,000- A. estimate cost function
- B. estimate price function
- C. estimate supply function
- D. estimate demand function
Explanation: After defining the objective, identifying the cost driver, gathering data, and examining the data, the next step is to estimate the cost…
Correct answer: estimate cost function- A. nonlinear cost function
- B. linear cost function
- C. linear price function
- D. nonlinear price function
Explanation: A nonlinear cost function does not maintain a constant rate of change, so its total-cost graph is not a straight line.
Correct answer: nonlinear cost function- A. irrelevant range of linearity
- B. relevant range of linearity
- C. significant range
- D. insignificant range
Explanation: The relevant range is the normal activity interval within which the assumed linear relationship between the independent and dependent…
Correct answer: relevant range of linearity- A. cost estimation methods
- B. price estimation methods
- C. unit estimation method
- D. variable estimation method
Explanation: Conference, quantitative analysis, and account analysis are techniques used to estimate the behavior and amount of costs.
Correct answer: cost estimation methods- A. fixed cost
- B. constant
- C. variable
- D. both a and b
Explanation: A fixed cost remains unchanged in total when production volume changes within the relevant range.
Correct answer: fixed cost- A. constant
- B. variable
- C. expression
- D. base and exponent
Explanation: In Y = a + bX, the constant a is the intercept, representing the estimated cost when activity is zero.
Correct answer: constant- A. cost function
- B. revenue function
- C. unit function
- D. relative function
Explanation: A cost function expresses how total cost changes with an activity or output level, commonly as Y = a + bX.
Correct answer: cost function- A. activity based costing
- B. margin based costing
- C. goodness of costing
- D. handling based costing
Explanation: Activity-based costing assigns costs through activities such as machine setups, material handling, customer service and distribution.
Correct answer: activity based costing- A. parallel correlation
- B. serial correlation
- C. auto correlation
- D. both B and C
Explanation: A systematic pattern among successive residuals is serial correlation, also called autocorrelation.
Correct answer: both B and C- A. manufacturing analysis method
- B. price analysis method
- C. unit analysis method
- D. account analysis method
Explanation: The account analysis method estimates cost behavior by reviewing individual accounts and classifying their costs as fixed or variable for…
Correct answer: account analysis method- A. One variable series
- B. multiple regression
- C. simple regression
- D. Two way regression
Explanation: Multiple regression estimates the relationship between one dependent variable and two or more independent variables.
Correct answer: multiple regression1217. The second step for estimation of cost function by using quantitative analysis is to ___________?
- A. choose independent variable
- B. choose cost estimation method
- C. choose price estimation method
- D. choose dependent variable
Explanation: After identifying the dependent cost variable, the next step is to select the independent variable or cost driver that explains changes in…
Correct answer: choose independent variable- A. simple regression
- B. Two way regression
- C. One variable series
- D. multiple regression
Explanation: Simple regression examines the relationship between one independent variable and one dependent variable.
Correct answer: simple regression- A. independent variable
- B. function variable
- C. evaluation variable
- D. estimation variable
Explanation: The independent variable is the predictor, while the dependent variable is the outcome being predicted.
Correct answer: independent variable- A. activity coefficient
- B. cost coefficient
- C. change coefficient
- D. slope coefficient
Explanation: The slope coefficient measures the change in total cost for each one-unit change in the activity level.
Correct answer: slope coefficient