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# Specification Analysis : Estimation Assumptions Quiz PDF: Questions and Answers - 63

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## Specification Analysis : Estimation Assumptions Questions and Answers : Quiz 63

MCQ 311: The individual variable coefficient's multicollinearity leads to

A) decrease in variance
B) increase in variance error
C) increase in standard error
D) decrease in standard error

MCQ 312: The constant variance is classified in assumptions testing as

A) homogenous
B) homoscedasticity
C) heteroscedasticity
D) heterogeneous

MCQ 313: The revenue and throughput contribution is subtracted to calculate the

A) indirect labor cost of goods sold
B) direct labor cost of goods sold
C) direct material cost of goods sold
D) indirect material cost of goods sold

MCQ 314: The production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as

A) reduced work
B) spoilage
C) rework
D) scrap

MCQ 315: If the static budget amount is \$6200 and the flexible budget amount is \$4500, then the sales volume variance will be

A) \$6,200
B) \$1,700
C) \$17,000
D) \$4,500

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