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BBA Cost Accounting MCQs – Practice Test 26 (Chapter 11)

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Cost Function & Behavior MCQ – Practice Test 26 PDF Download

MCQ 126: The examples of nonlinear cost functions are:

  1. step constant functions
  2. step cost functions
  3. step price functions
  4. step object functions

MCQ 127: If the residual error is 35 and the predicted cost value is 20, then the observed cost value will be:

  1. 55
  2. 15
  3. 65
  4. 85

MCQ 128: In Regression Analysis, if an observed cost value is 85 and the disturbance error is 25 then predicted cost value will be:

  1. 95
  2. 50
  3. 120
  4. 100

MCQ 129: The relationship between cost and cost driver is economically plausible if the goodness of fit:

  1. has meaning
  2. has no meaning
  3. has index values
  4. has no index values

MCQ 130: The situation in which two or more independent variables are highly correlated is known as:

  1. price linearity
  2. cost linearity
  3. division linearity
  4. multi-collinearity

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Cost Management and Pricing Decisions MCQs
Cost Function and Behavior MCQs
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Flexible Budget: Overhead Cost Variance MCQs
Cost Volume Profit Analysis MCQs
Process Costing MCQs
Spoilage, Rework and Scrap MCQs

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