E-PolyLearning

1. The relationship between cost and cost drivers is
a. stationary
b. not stationary
c. intrinsic
d. extrinsic
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Answer: (b).not stationary

2. The cost function, in which cost does not change with any change in level of activity is a part of
a. step price functions
b. step object functions
c. step constant functions
d. step cost functions
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Answer: (d).step cost functions

3. The cost pattern, in which production inputs are to be used in discrete functions, but the quantities are fractional, will be categorized as
a. continuously variable cost function
b. fixed cost function
c. mixed cost function
d. semi variable cost function
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Answer: (a).continuously variable cost function

4. The range in which relationship exists between level of activity or total cost is called
a. functional range
b. relevant range
c. unit range
d. related range
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Answer: (b).relevant range

5. The relationship based on unrelated level of activity and past data of cost is measured with the help of
a. cost estimation
b. price estimation
c. unit estimation
d. production estimation
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Answer: (a).cost estimation

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