Estimating Cost Functions Multiple Choice Questions with Answers – PDF Download

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

1. functional range
2. relevant range
3. unit range
4. related range

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

1. unit estimation
2. production estimation
3. cost estimation
4. price estimation

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

1. fixed cost
2. constant
3. variable
4. 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:

1. cost function
2. revenue function
3. unit function
4. relative function

MCQ 5: An amount by which the total cost changes with respect to the change in level of activity is classified as:

1. activity coefficient
2. cost coefficient
3. change coefficient
4. slope coefficient