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 9 of 14

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Q81.
The higher level of production leads to

a.

higher repair cost

b.

higher setup cost

c.

lower repair cost

d.

higher setup cost

Discuss
Answer: (a).higher repair cost
Q82.
The method of estimation of cost function, by making the opinions and analysis about cost and cost drivers is classified as

a.

conference method

b.

inference method

c.

pricing method

d.

manufacturing method

Discuss
Answer: (a).conference method
Q83.
Within the relevant range, the cost function in which cost does not change in narrow ranges of activity is called

a.

fixed cost function

b.

variable cost function

c.

step variable cost function

d.

step fixed cost function

Discuss
Answer: (c).step variable cost function
Q84.
In the linear cost function which is y=a + bx, the objective is to find the

a.

values of a and b

b.

values of x and y

c.

values of a and x

d.

values of b and y

Discuss
Answer: (a).values of a and b
Q85.
The statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called

a.

times series method

b.

time horizon method

c.

aggression method

d.

regression method

Discuss
Answer: (d).regression method
Q86.
The line which uses to join observations with lower and highest values of cost driver is called

a.

straight line

b.

curved line

c.

horizontal line

d.

vertical line

Discuss
Answer: (a).straight line
Q87.
A technique which minimizes sum of squared vertical difference, to determine the regression line is considered as

a.

negative square technique

b.

positive square technique

c.

least square technique

d.

most square technique

Discuss
Answer: (c).least square technique
Q88.
In Regression Analysis, if an observed cost value is 85 and the disturbance error is 25 then predicted cost value will be

a.

110

b.

125

c.

60

d.

70

Discuss
Answer: (c).60
Q89.
The better fit between estimated cost and actual observations is represented by

a.

variable residual terms

b.

smaller residual terms

c.

larger residual terms

d.

zero residual terms

Discuss
Answer: (b).smaller residual terms
Q90.
If an unexplained variation is 456870 and the total variation is 955000, then the coefficient of determination will be

a.

0.4528

b.

0.4783

c.

0.5216

d.

0.5425

Discuss
Answer: (c).0.5216
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