Important questions about Cost Function and Behavior. Cost Function and Behavior MCQ questions with answers. Cost Function and Behavior exam questions and answers for students and interviews.

The relationship between cost and cost drivers is

Options

A : a. stationary

B : b. not stationary

C : c. intrinsic

D : d. extrinsic

The cost function, in which cost does not change with any change in level of activity is a part of

Options

A : a. step price functions

B : b. step object functions

C : c. step constant functions

D : d. step cost functions

The cost pattern, in which production inputs are to be used in discrete functions, but the quantities are fractional, will be categorized as

Options

A : a. continuously variable cost function

B : b. fixed cost function

C : c. mixed cost function

D : d. semi variable cost function

The range in which relationship exists between level of activity or total cost is called

Options

A : a. functional range

B : b. relevant range

C : c. unit range

D : d. related range

The relationship based on unrelated level of activity and past data of cost is measured with the help of

Options

A : a. cost estimation

B : b. price estimation

C : c. unit estimation

D : d. production estimation

The model which states decline in extra time needed to produce last unit, every time for the cumulative quantity of doubled units produced is classified as

Options

A : a. incremental unit average model

B : b. incremental cost learning model

C : c. incremental unit time learning model

D : d. incremental price learning model

In the 'specification analysis', the assumptions related to residuals states must be

Options

A : a. worst

B : b. independent

C : c. dependent

D : d. good

The deviations between estimated regression line and the vertical deviations are classified as

Options

A : a. fixed terms

B : b. indexed terms

C : c. variable terms

D : d. residual terms

In regression analysis, if the observed cost value is 50 and predicted cost value is 7, then the disturbance term will be

Options

A : a. 57

B : b. 43

C : c. 67

D : d. 47

The number of observations in regression analysis is considered as

Options

A : a. degree of possibility

B : b. degree of average

C : c. degree of variance

D : d. degree of freedom

Estimation of cost functions of an ignoring information from all points, but considering two observation points, can be classified as

Options

A : a. disadvantage of low high method

B : b. disadvantage of high low method

C : c. advantage of high low method

D : d. advantage of low high method

The graphical representation of cost driver data and costs are considered as

Options

A : a. plotting the data

B : b. plotting the costs

C : c. plotting the cost drivers

D : d. plotting curved line

In assumptions of specific analysis, the normality of residuals is satisfied with the use of

Options

A : a. real price data

B : b. real cost data

C : c. multiplier data

D : d. divisional data

In quantitative analysis to estimate cost function, the fourth step is to

Options

A : a. write a liner function

B : b. write price function

C : c. write manufacturing function

D : d. plot the data

A concept used to define the learning curve in broader application is called

Options

A : a. discrete curve

B : b. fixed curve

C : c. mixed curve

D : d. experience curve

The large residual term and negative slope of line indicate

Options

A : a. inverse proportion

B : b. direct proportion

C : c. badness proportions

D : d. goodness proportion

The success of cost reduction initiatives are evaluated by accurate

Options

A : a. cyclical factors

B : b. indexed technique

C : c. price estimation

D : d. cost estimation

Which one of the following is the main advantage of quantitative method?

Options

A : a. non expression

B : b. non constant

C : c. objective

D : d. non objective

An implementation of activity based costing would be possible only if the accountants find

Options

A : a. goodness of each activity

B : b. handling of each activity

C : c. cost driver for each activity

D : d. cost object for each activity

In assumptions testing, the violation of the constant variance is called