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Estimating Cost Function using Quantitative Analysis MCQs – Mock Test 38 PDF Download

MCQ 186: For estimation of each cost pool for cost function, the attention must be paid to:

  1. cost object hierarchy
  2. management hierarchy
  3. price hierarchy
  4. cost hierarchy

MCQ 187: If the net initial investment is $6850000 and the uniform increases yearly cash flows is $2050000, then payback period will be:

  1. 3.34 years
  2. 4.34 years
  3. 5.34 years
  4. 6.34 years

MCQ 188: In incremental cost allocation method, the cost object user who is ranked third in ranking order is classified as:

  1. First incremental user
  2. primary user
  3. secondary user
  4. second incremental user

MCQ 189: The subtracted flexible budget amount can form an actual result to calculate:

  1. unstated budget variance
  2. flexible budget variance
  3. constant budget variance
  4. static budget variance

MCQ 190: The difference that exists between total revenues, can be earned from two different alternatives is termed as:

  1. independent revenue
  2. incremental revenue
  3. differential revenue
  4. dependent revenue

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