Test Learning Questions

Coefficient of Determination measures

the proportion of the total variation in the value of one variable that can be explained by variations in the value of the other variable.

It is important that information taken from the internet

is authoritative

Sample Mean vs Population Mean

• Sample mean is the average of the sample

• Population mean is the average of the whole population

T/F: The longer the survey is, the better, as more information will be obtained

False

T/F: Leading questions should be avoided.

True

Coefficient of Variation =

Standard Deviation/Mean

Standard Deviation =

Square Root of Variance

T/F: Digital files are only classified as digital assets if the right to use the file is included.

True - the RoU must be included!

T/F: Digital assets cease to exist when technology progresses.

False - they continue to exist regardless of where it is stored

T/F: Machine Learning counts as a form of AI

true

T/F: Correlation occurring by chance is more likely to happen in a large data set.

False - more likely in a small data set

T/F: Causation implies correlation

True

T/F: Omitted variable bias leads to incorrect cause and effect conclusions.

True

T/F: A Salesperson can count as a Cost Object

True - costs can be ascertained to them

T/F: Sick Pay is a form of Direct Wages

False - it is indirect

With all average price systems where it is required to keep prices up to date, in which of the following situations is it not necessary to recalculate the average price

each time an issue is made

A manufacturing firm is very busy and overtime is being worked.

The amount of overtime premium paid to production line workers would normally be classed as:

Factory Overheads

Wage payments for idle time of direct workers within a production department are classified as:

Factory Overhead

Administration Overheads are

rent, executive salaries, legal fees

• salaries of workers count as factory overheads

Royalty costs count as

direct expenses as they can be traced back to the product

Overhead absorption is

final process of absorbing the total cost centre overheads into product costs

Overhead allocation is

the allotment of whole items of overhead costs to a particular cost centre or cost unit.

Overhead Apportionment is

spreading common costs over cost centres on the basis of benefit received

The process of overhead apportionment is carried out so that

Common costs are shared among cost centres

Apportionment cannot be used as a way to

control costs - that is what budgets do

Supervisors’s salaries are more likely to be

allocated

A payment received as royalty counts as

a prime cost

Cost Objects =

A branch of a high street chemists

An accounts department

Things that are used are

elements of cost

When comparing the profits reported under marginal and absorption costing when the levels of inventories decreased, and assuming that unit variable costs and fixed costs are constant:

Absorption Costing will have lower profits, but a higher closing inventory valuations

Under Absorption Costing,

it always has a higher closing inventory valuation