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!

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Cost Function and Behavior MCQs | Page 12 of 14

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Q111.
In estimation of cost function, an example of independent variable is

a.

level of activity

b.

quantity stored

c.

quantity manufactured

d.

quality of product

Discuss
Answer: (a).level of activity
Q112.
In regression analysis, if an observed cost value is 65 and the disturbance error is 32 then predicted cost value will be

a.

97

b.

57

c.

33

d.

53

Discuss
Answer: (c).33
Q113.
The formula of 1 - unexplained variation ⁄ total variation is used to calculate

a.

coefficient of determination

b.

coefficient of index

c.

coefficient of residual

d.

coefficient of prediction

Discuss
Answer: (a).coefficient of determination
Q114.
The cause and effect relationship that exists between change in total cost level and change in level of activity, is measured with the help of

a.

production driver

b.

cost driver

c.

price driver

d.

estimation driver

Discuss
Answer: (b).cost driver
Q115.
The cost that has elements of variable and fixed costs at the same time is

a.

variable cost

b.

mixed cost

c.

semi variable cost

d.

both b and c

Discuss
Answer: (d).both b and c
Q116.
If an unexplained variation is 255050 and the total variation is 550505, then coefficient of determination will be

a.

0.5063

b.

0.4633

c.

2.16

d.

0.5367

Discuss
Answer: (d).0.5367
Q117.
If the difference in costs is $32000 and the slope coefficient is 0.40, then difference in machine hours would be

a.

$80,000

b.

$12,800

c.

$70,000

d.

$22,800

Discuss
Answer: (a).$80,000
Q118.
In plotting of cost functions, the level of activities according to which the charged cost is represented on

a.

x-axis

b.

y-axis

c.

unit axis

d.

term axis

Discuss
Answer: (a).x-axis
Q119.
The function used to measure decline in labor hours per unit as the units of production increases is called

a.

fixed curve

b.

learning curve

c.

linear curve

d.

mixed curve

Discuss
Answer: (b).learning curve
Q120.
If the difference in costs is $16000 and the slope coefficient is 0.40, then difference in machine hours would be

a.

$50,000

b.

$5,400

c.

$6,400

d.

$40,000

Discuss
Answer: (d).$40,000
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