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 5 of 14

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Q41.
The constant variance is classified in assumptions testing as

a.

homogenous

b.

homoscedasticity

c.

heteroscedasticity

d.

heterogeneous

Discuss
Answer: (b).homoscedasticity
Q42.
As compared to cumulative average-time learning model, the learning model which predicts more cumulative total time to produce more units is known as

a.

incremental unit time learning model

b.

incremental price learning model

c.

incremental unit average model

d.

incremental cost learning model

Discuss
Answer: (a).incremental unit time learning model
Q43.
The model, in which the produced unit doubles every time as the cumulative average time per unit decreases, by a constant percentage can be classified as

a.

cumulative average time learning model

b.

cumulative mean learning model

c.

cumulative weighted learning model

d.

cumulative average pricing model

Discuss
Answer: (a).cumulative average time learning model
Q44.
In the specification analysis, the assumptions related to variance state that:

a.

variance of residuals is constant

b.

variance of goodness is constant

c.

goodness of fit is constant

d.

standard error is constant

Discuss
Answer: (a).variance of residuals is constant
Q45.
If the slope coefficient is 0.60 and the difference in machine hours is $50000, then difference in cost can be

a.

$68,700

b.

$58,700

c.

$30,000

d.

$83,333.34

Discuss
Answer: (c).$30,000
Q46.
The fifth step in quantitative analysis of estimating cost function is to

a.

estimate cost function

b.

estimate price function

c.

estimate supply function

d.

estimate demand function

Discuss
Answer: (a).estimate cost function
Q47.
The lower level of production leads to

a.

higher setup cost

b.

lower repair cost

c.

higher setup cost

d.

higher repair cost

Discuss
Answer: (b).lower repair cost
Q48.
In plotting the cost functions, the number of machine hours and batches are represented on

a.

unit axis

b.

term axis

c.

x-axis

d.

y-axis

Discuss
Answer: (d).y-axis
Q49.
An error term, disturbance term or residual term is calculated as

a.

U=A-b

b.

u=A-a

c.

u=Y-y

d.

u=X-x

Discuss
Answer: (c).u=Y-y
Q50.
The cost function, in which the graph of total cost would not result in straight line is classified as

a.

nonlinear cost function

b.

linear cost function

c.

linear price function

d.

nonlinear price function

Discuss
Answer: (a).nonlinear cost function
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