Cost Function and Behavior MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Cost Function and Behavior, a fundamental topic in the field of Cost Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Cost Function and Behavior MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Cost Function and Behavior mcq questions that explore various aspects of Cost Function and Behavior problems. Each MCQ is crafted to challenge your understanding of Cost Function and Behavior principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Cost Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Cost Function and Behavior MCQs are your pathway to success in mastering this essential Cost Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Cost Function and Behavior. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Cost Function and Behavior knowledge to the test? Let's get started with our carefully curated MCQs!

Cost Function and Behavior MCQs | Page 11 of 14

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Q101.
The learning curve models include

a.

cumulative average time learning model

b.

incremental unit time learning model

c.

incremental production learning model

d.

both a and b

Discuss
Answer: (d).both a and b
Q102.
For slope coefficient b, the value of the estimated coefficient is considered as

a.

d-value

b.

c-value

c.

t-value

d.

b-value

Discuss
Answer: (c).t-value
Q103.
If the difference between costs linked to highest and lowest observation of cost driver is $27000 and observation of cost driver is 90 machine hours, then slope coefficient would be

a.

$800

b.

$400

c.

$300

d.

$600

Discuss
Answer: (c).$300
Q104.
The cause and effect relationship between activity and costs is the result of

a.

contractual agreement

b.

knowledge of operations

c.

measureable unit relationship

d.

all of above

Discuss
Answer: (d).all of above
Q105.
If the difference in costs is $9000 and the difference in machine hours is $15000, then slope coefficient would be

a.

1.24

b.

0.24

c.

0.6

d.

1.667

Discuss
Answer: (c).0.6
Q106.
To decide whether the cost is variable cost or fixed cost with respect to some specific activity depends upon

a.

units of labor

b.

unit of production

c.

time horizon

d.

units of inventory

Discuss
Answer: (c).time horizon
Q107.
In a given scenario, if the cost is considered as indirect cost then independent variable will be considered as

a.

demand allocation base

b.

supply allocation base

c.

cost allocation base

d.

price allocation base

Discuss
Answer: (c).cost allocation base
Q108.
The cost analysis method, which uses mathematical method to use fit between past data observations and cost functions is termed as

a.

quantitative analysis method

b.

qualitative analysis method

c.

account analysis method

d.

conference analysis method

Discuss
Answer: (a).quantitative analysis method
Q109.
The third step in estimation of cost function, by using quantitative analysis is collection of data for

a.

cost and cost object

b.

price and cost driver

c.

dependent variable and cost driver

d.

independent variable and cost driver

Discuss
Answer: (c).dependent variable and cost driver
Q110.
If the residual error is 51 and the predicted cost value is 37, then the observed cost value will be

a.

14

b.

88

c.

24

d.

68

Discuss
Answer: (b).88
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