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Sir i got some more questions, i posted yesterday but i think it accidentally got deleted or maybe didn’t post properly.
Q1:Which of the following is a reason why variance analysis is inappropriate for modern manufacturing companies?
A)Standard product costs apply to manufacturing environments in which quantities of an identical product are output from the production process.
B)it is doubtful whether standard costing is of much value for performance setting and control in automated manufacturing environments.
C)Standard costing and adherence to a preset standard is inconsistent with the concept of continuous improvement, which is applied within TQM and JIT environments.
D)all of the choices
Could you please explain me how all of these reasons are inappropriate for modern manufacturing company, I don’t get it any of the reasons
Q2: which of the following criticisms of standard costing apply in all circumstances?
A) standard costing can only be used where all operations are repetitive and output is homogeneous.
B) standard costing systems cannot be used in environments which are prone to change. They assume stable conditions.
C) standard costing systems assume that performance to standard is acceptable. They do not encourage continuous improvement.
I don’t understand this as well, like standard costing can be used in environment which change like we use them to find flexible costing, why can it be a criticism, please could you rather explain them
Q3: a publishing company is researching the reading habits of the United Kingdom’s population. It randomly selects a number of locations from around the UK and then interviews everyone who lives in these locations.
What is this approach to sampling known as?
Systematic sampling, stratified sampling, quota sampling, cluster sampling.
Answer cluster, how is it cluster sir? In book it’s mentioned cluster is a part of probability sampling but it’s non random sampling it selects one definable subsection, but same for quota sampling it’s non random but it interviews, could you please explain this?
Q4 sir in one mcq statements were asked relating to activity based costing, had to mark any 2 as true,
But this wasn’t true “activity based costs can be used to identify Relevant costs for decision making” how sir? In book it’s says activity based costing provides meaningful costs and can be used for decision making.
Last question.
Sir another mcq asked for sampling methods which require a sampling frame, i know random and stratified require that, but in kit it counts systematic as well, I didn’t understand this, also i wanted to know if multi stage requires sampling frame as well? Same goes for cluster, because they’re part of probability sampling, but sampling frame is only for those which are random while cluster, please explain this sir
Please do not ask about different topics in the same post. Post each questions separately. (The reason is that our answers are for the benefit of all students (we do not give private tuition 🙂 ) and many students use the search facility to see if their problem has already been dealt with.
Q1 Modern manufacturing companies are likely to produce more than one product. Performance setting is more appropriate when labour is used as opposed to machines. Always trying to improve means that any standard cost becomes out of date.
Q2 Flexible budgeting is flexing for changes in the level of production. Changing environments means that costs will change and a ‘standard cost’ is not applicable.
Q3 I do not know what book you are referring to. The example given is cluster sampling just as is explained in our free notes and lectures.
Q4 Systematic needs a sampling frame because selecting (for example) every 10th item means knowing when you have finished 🙂
Yes sir, i apologize for posting in the same post. It’s just i thought it might be considered spamming posting separately since they all are f2 theory questions, but i will post them separately from now onwards, since these questions are already here, i will ask about them here, new one’s i will post separately
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