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MBA Cost Accounting Practice Tests

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## Estimating Cost Functions MCQ Quiz : Accounting MCQs

MCQ 1: The range in which relationship exists between level of activity or total cost is called

A) functional range
B) relevant range
C) unit range
D) related range

MCQ 2: A helpful technique, for accurate forecasts about costs to be incurred in future is a part of

A) unit estimation
B) production estimation
C) cost estimation
D) price estimation

MCQ 3: The component of total cost, which never changes with change in level of production is classified as

A) fixed cost
B) constant
C) variable
D) both a and b

MCQ 4: The description in mathematical form to represent changes in cost, with level of activity related to that cost is classified as

A) cost function
B) revenue function
C) unit function
D) relative function

MCQ 5: 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

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