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 8 of 14

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Q71.
An amount by which the total cost changes with respect to the change in level of activity is classified as

a.

activity coefficient

b.

cost coefficient

c.

change coefficient

d.

slope coefficient

Discuss
Answer: (d).slope coefficient
Q72.
An assumption of specification analysis states: any observation does not belong to any other observation's residual value, is classified as

a.

independence of residuals

b.

dependence of residuals

c.

independence of correlation

d.

none of the above

Discuss
Answer: (a).independence of residuals
Q73.
The most frequently used methods of quantitative analysis include

a.

variable equation

b.

high low method

c.

low high method

d.

constant equation

Discuss
Answer: (b).high low method
Q74.
If the residual error is 25 and the predicted cost value is 50, then the observed cost value would be

a.

100

b.

25

c.

50

d.

75

Discuss
Answer: (d).75
Q75.
In multicollinearity, the correlation coefficient between two independent variables must be greater than

a.

0.7

b.

0.6

c.

0.5

d.

0.4

Discuss
Answer: (a).0.7
Q76.
If the coefficients are similar for two accounting periods, then single cost relationship is estimated with the help of

a.

data of fixed cost

b.

cost driver of data

c.

pool of data

d.

cost object of data

Discuss
Answer: (c).pool of data
Q77.
The relationship between independent variable and dependent variable must be

a.

general ledger

b.

non-achievable

c.

non measureable

d.

economically plausible

Discuss
Answer: (d).economically plausible
Q78.
In adjustment issues of costing, the database must contain reliable measure of

a.

fixed cost driver

b.

cost driver and cost

c.

cost driver and object

d.

mixed cost driver

Discuss
Answer: (b).cost driver and cost
Q79.
If the difference in costs is $7000 and the difference in machine hours of is $18000, then slope coefficient would be

a.

2.571

b.

0.39

c.

0.2571

d.

3.39

Discuss
Answer: (b).0.39
Q80.
In adjustment issues and data collection, the inflation affects the

a.

cost driver and cost

b.

cost object and cost

c.

heterogeneous cost

d.

homogenous cost

Discuss
Answer: (a).cost driver and cost
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