35 Created on June 03, 2023 By admin COST QUIZ 1 1 / 20 Which of the following is including in cost of production and is termed as accounting cost? Wages to workers employed Prices for the raw materials Fuel and Power Used All of these 2 / 20 Implicit cost may be defined as the: Costs which do not change over a period of time Costs which the firm incurs but doesn’t disclose Payment to the non-owners of the firm for the resources Money payment which the self employed resources could have earned in their best alternative employment. 3 / 20 Implicit cost can be defined as ________. Money payments made to the non-owners of the firm for the self-owned factors employed in the business and therefore not entered into books of account. Money not paid out to the owners of the firm for the self owned factors employed in a business and therefore not entered into books of account. Money payments which the self owned and employed resources could have earned in their next best alternative employment and therefore entered into books of account. Money payments which the self owned and employed resources earn in their best use and therefore entered into books of ac-count. 4 / 20 Which of the following is an example of an “implicit cost”? Interest that could have been earned on retained earnings used by the firm to finance expansion. The payment of rent by the firm for the building in which it is housed. The interest payment made by the firm for funds borrowed from a bank. The Payment of wages by the firm. 5 / 20 Which of the following is an example of “explicit cost”? Concave, Decreasing Concave, Increasing Convex, Decreasing Convex, Increasing 6 / 20 Accounting cost is ________ of Economic cost. Equal to Less than More than Not Included 7 / 20 Economic costs of production differ from accounting costs of production because ________. Economic costs include expenditures for hired resources while accounting costs do not. Accounting costs include opportunity costs which are deducted later to find paid out costs. Accounting costs include expenditures for hired resources while economic costs do not. Economic costs add the opportunity cost of a firm which uses its own resources. 8 / 20 Cost in terms of pain, discomfort, disability involved in supplying the various factors of production by their owners are termed as ________. Social cost Explicit cost Real cost Implicit cost 9 / 20 The cost of resources owned and employed by the entrepreneur himself in his business is termed as ________ cost. Explicit Implicit Fixed Variable 10 / 20 Economic cost excludes which of the following : Accounting cost + explicit cost Accounting cost + implicit cost Explicit cost + Implicit cost Accounting cost + opportunity cost 11 / 20 Outlay costs involve ________ expenditure at some point of time and hence ________ recorded in the books of account. Financial, are not Financial, are Non-Financial, are not Non- Financial, are 12 / 20 Outlay Costs involve ________ expenditure of funds on wages, mate-rial, returns interest, etc. Actual Expected Fixed Planned 13 / 20 Accounting Costs are also called as ________ costs whereas the cost of factors owned by the entrepreneur himself and employed in his own busi-ness is called as costs. Explicit, implicit Implicit, Explicit Economic, Non-Economic Explicit, Non-Economic. 14 / 20 Which of the following will be included in implicit Cost? Normal return on money Capital invested by the entrepreneur himself in his own business. The wages or Salary not paid to the entrepreneur, but could have earned if the services has been sold somewhere else Wages or Salary paid to workers Both (a) and ( b) 15 / 20 Economic Costs comprises ________. Accounting Costs Implicit Cost Explicit Cost Both (a) & (b) 16 / 20 Opportunity Cost is: Marginal cost Variable cost Total fixed cost None of these 17 / 20 In which of the following cases opportunity cost concept applies? Resources have alternative uses Resources have limited uses Resources have no use None of the above. 18 / 20 If the market price of good is more than the opportunity cost of producing it, then: The market price of the product will increase in the long run Producers will increase supply in the long run Resources will flow away from production of the good, causing supply to decline with the passage of time The situation will remain unchanged as long as supply and demand remain in balance. 19 / 20 The cost of one thing in terms of alternative given up is known as: Opportunity Cost Real Cost Production Cost Physical Cost 20 / 20 Opportunity cost is: Direct cost Total cost Accounting cost Cost of forgone opportunity Your score isThe average score is 65% LinkedIn Facebook Twitter VKontakte 0% Restart quiz . 24 Created on June 03, 2023 By admin COST QUIZ 2 1 / 20 Direct Cost is also known as : Indirect Cost Traceable Cost Opportunity Cost Accounting Cost. 2 / 20 Opportunity Cost is the cost of the ________ opportunity and involves a comparison between the policy that was ________ and the policy that was ________. Other, Chosen, Should be chosen Missed, Chosen, should be chosen Missed, Chosen, rejected None of these 3 / 20 Opportunity cost is the ________ value that is foregone in choosing one activity over the alternative. Subjective, other Subjective, next best Principal, other Principal, next best 4 / 20 The concept of opportunity cost has to be considered whenever : Resources are scarce Decision involving choice of one option over other(s) is involved Both (a) & (b) Neither (a) nor (b) 5 / 20 Opportunity Cost is ________ Recorded in the books of account Sacrificed alternative Both (a) and (b) None of the above 6 / 20 Theoretically, incremental costs are related to the concept of ________. Marginal Cost Fixed Cost Judgmental Cost Semi Variable Cost 7 / 20 Identify the indirect Cost Common cost incurred for general operations Wages paid to worker Material Purchased Commission Paid 8 / 20 Indirect Costs are not easily and definitely identifiable in relation to a plants, products, process or department. These are ________ changed to different jobs or products in stan-dard accounting Not Never Nevertheless Cannot 9 / 20 ________ may vary according to the changes accruing to the product process or machine. Direct Cost Implicit-Cost Indirect Cost Non Traceable Cost. 10 / 20 ________ costs are the costs that are readily identified and are traceable to a particular product, operations or plant. Direct Cost Traceable Cost Indirect Cost Both (a) & (b) 11 / 20 ________ Cost refers to the cost incurred in the past on the acquisition of a productive asset Current Cost Historical Cost Future Cost Desired cost. 12 / 20 Which of the following in incurred first? Historical Cost Replacement Cost Realized Value None of these 13 / 20 Which one of the following is an example of Sunk Cost? Expenses on advertising Research & Development Expenditure Specialized equipment & fixed facilities All of these. 14 / 20 ________ refer to those costs which are already incurred once and for all and cannot be recovered. Sunk Cost Fixed Cost Variable Cost Incremental 15 / 20 Which of the following is part of incremental costs? Change in product line Replacement of worn-out machinery Buy a new production facility All of these 16 / 20 The Cost of resources for which the firm is not required to pay price is called as ________ cost. Fixed Private Social Welfare 17 / 20 Private Costs are costs actually incurred or provided for by firms. These may be ________. Explicit Implicit Either (a) or(b) None of these 18 / 20 Usually in the case of continuous decrease in price of an asset, which one of the following shall be the highest? Replacement Cost Historical Cost Realisable Value Variable Cost. 19 / 20 Other things remaining the same, an increase in price will make ________ cost higher than ________ cost. Historical, Replacement Replacement, Historical Historical, reliable Fixed, Historical. 20 / 20 A Company is willing to change its existing Machinery (5 years old) by a new machinery at a cost of ₹ 10,00,000. The cost of ₹ 10,00,000 may be regarded as: Historical Cost Replacement Cost New Cost Market Cost Your score isThe average score is 77% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 19 Created on June 03, 2023 By admin COST QUIZ 3 1 / 20 Cost Function is the mathemati-cal relation between ________ of a Product and the various determinants of ________. Cost, Costs Revenue, Revenues Cost, Revenues Revenue, Costs. 2 / 20 In the long run all factors are ________. Fixed Variable All factors remain unchanged None 3 / 20 Which of the following statements is correct concerning the relationships among the firm’s cost functions? TC = TFC – TVC. TVC = TFC – TC. TFC = TC – TVC. TC = TVC – TFC. 4 / 20 Which of the following is not a determinant of the firm’s cost function? The production function. The price of labour. Taxes. The price of the firm’s output 5 / 20 ________ Costs normally figure in business decisions as they Form part of total cost and are inter-nalized by the firm. Fixed Private Social Welfare 6 / 20 Which of the following is a kind of Cost function? Short-Run Cost Function Long Run Cost Function Short/Long Run Cost Curve Both (a) and (b) 7 / 20 Cost Functions are derived from ________ cost data of the firms. Actual Expected Desired Standard. 8 / 20 The Cost function expresses the relationship between ________ and ________. Costs, input Costs, Output Dependent Variable, Cost None of these 9 / 20 Cost function is a function which is obtained from ________. Production Function Market Supply of inputs Market Supply of outputs Both (a) & (b). 10 / 20 In a cost function, the dependent variable is unit cost or total cost and the independent variable(s)are ________. Units sold and purchased. Price of factor, & size of output Relevant phenomenon which has a bearing on cost like technology, level of capacity utilisation, efficiency, etc Both (b) & (c) 11 / 20 If fixed cost is plotted on a graph taking output on X-axis and Cost on Y axis, the Fixed cost will be represented by ________. Straight line parallel to Y axis Straight line parallel to X axis U Shaped Curve Hyper-parabola Curve 12 / 20 ________ Costs do not change with changes in Output. Fixed Valuable Semi Valuable Both (a) & (b) 13 / 20 Suppose output increases in the short run. Total cost will Increase due to an increase in fixed costs only. Increase due to an increase in variable costs only. Increase due to an increase in both fixed and variable costs. Decrease if the firm is in the region of diminishing returns. 14 / 20 What is the total cost of produc-tion of 20 units, if fixed cost ₹ 5,000 and variable cost is ₹ 2/-? 5,400 5,400 4,960 5,020 15 / 20 A company produces 10 units of output and incurs ₹ 30 per unit as variable cost and ₹ 5 per unit of fixed cost. What will be its total cost of producing 10 units₹ ₹ 300 ₹ 35 ₹ 305 ₹ 350 16 / 20 A firm producing 9 units of output has an average total cost of f 200 and has to pay ₹ 630 to its fixed cost of production. How much of the average total cost is made up of variable cost? ₹ 150 ₹ 130 ₹ 70 ₹ 300 17 / 20 The vertical difference between TVC and TC curves is equal to: MC AVC TFC None of the above 18 / 20 Fixed cost curve normally: Starts from the origin Is U shaped Is vertical line Is horizontal line. 19 / 20 Fixed costs may also be called as: Inescapable Uncontrollable Constant All of the above 20 / 20 Fixed costs are ________ a function of output. Not Always Always Directly related Your score isThe average score is 70% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 18 Created on June 03, 2023 By admin COST QUIZ 4 1 / 20 ________ are those costs which change with changes in output. Fixed Semi-Variable Variable Both (a) & (b) 2 / 20 If a Firm shuts down for a short period, it will not incur any ________ cost. Fixed Semi-Variable Variable Both (a) & (b) 3 / 20 Which of the following is a vari-able cost in the short run₹ Rent of the factory. Wages paid to the factory labou Interest payments on borrowed financial capital. Payment on the lease for factory equipment. 4 / 20 Total cost in the short run is clas-sified into fixed costs and variable costs. Which one of the following is a variable cost? Cost of raw materials. Cost of equipment. Interestpaymentonpastborrow- ings. Payment of rent on building. 5 / 20 Which cost increases continuously with the increase in production? Average cost Marginal cost. Fixed cost. Variable cost. 6 / 20 The total Cost Curve is obtained by adding ________ the ________ curve and the Curve. Vertically, Total Fixed Cost, Total Variable Cost Horizontally, Cost, Total Vertically, Total Cost, Total Vari-able cost Horizontally, Cost Valuable 7 / 20 Which of the following cost remains fixed over certain range of output but suddenly jump to a new higher level when output goes beyond a given limit? Total Fixed cost Total Variable Cost Both (a) & ( b) Semi-Variable Cost 8 / 20 The Semi-Variable Cost: ________ Remains Constant Remains variable proportionately Increases in stair-step fashion Increases proportionately 9 / 20 Electricity charges include both a fixed charge and a charge based on consumption. It should be classified as ________. Fixed Cost Variable Cost Semi-Variable Cost Quasi Cost. 10 / 20 Semi-Variable Costs are ________ Variable, ________ fixed in relation to the changes in the size of output. Neither, nor Neither, nor absolutely Absolutely, but relatively Absolutely, but is by nature. 11 / 20 Total Fixed cost curve Convex & downward sloping Concave & downward sloping Convex & upward sloping Concave & upward rising 12 / 20 Which of the following cost curves is never ‘U’ shaped? Average total cost curve Marginal cost curve Total cost curve Total Fixed cost curve 13 / 20 Which one of the following is correct? AFC = AVC + ATC ATC = AFC – AVC AVC = AFC + ATC AFC = ATC – AVC 14 / 20 Average fixed cost can be obtained through: AFC = TFC/TS AFC = EC/TU AFC = TC/PC AFC = TFC/TU 15 / 20 The costs which remain fixed over certain range of output but sud-denly jump to a new higher level when production goes beyond a given limit are called: Variable cost Semi-variable cost Stair – step variable cost Jumping cost. 16 / 20 Average fixed cost curve is always: Declining when output increases U-Shaped, if there are increasing returns to scale U-Shaped, if there are decreasing returns to scale Intersected by marginal cost at its minimum point 17 / 20 Which statement among below is correct in reference in Average Fixed Cost. Never becomes zero Curve never touches x-axis Curve never touches y-axis All of the above 18 / 20 When the output of a firm increase in the short run, its average fixed cost. Increases Decreases Remains constant First declines and then rises. 19 / 20 The slope of Average Fixed cost curve is? Falls from left to right Rises from left to right Parallel to x-axis Parallel to y-axis 20 / 20 Which of the following curves never tough any axis but is downward ________. Marginal cost curve Total cost curve Average fixed cost curve Average variable cost curve Your score isThe average score is 65% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 13 Created on June 03, 2023 By admin COST QUIZ 5 1 / 20 Average cost of producing 50 units of any commodity is ₹ 250 and fixed cost is ₹ 1,000. What will be the average fixed cost of producing 100 units of the commodity? ₹ 10 ₹ 30 ₹ 20 ₹ 05 2 / 20 A firms AFC is ₹ 200 at 10 units of output what will be it at 20 units of output? 500 100 150 200 3 / 20 A firm’s average fixed cost is ₹ 40 at 12 units. What will be the average fixed cost at 8 units: ₹ 60 ₹ 70 ₹ 90 ₹ 80 4 / 20 A firm’s average fixed cost is ₹ 20 at 6 units of output. What will it be at 4 units of output? ₹ 60 ₹ 30 ₹ 40 ₹ 20 5 / 20 Which of the following curves never touch any axis but is downward. Marginal cost curve Total cost curve Average fixed cost curve Average variable cost curve 6 / 20 If a firm’s output is zero, then: AFC will be positive AVC will be zero Both of (a) and (b) None of (a) and (b) 7 / 20 A firm producing 15 units of output has average cost of ₹ 250 and ₹ 125 as per unit cost for fixed factors of production. Then average variable cost will be ________. 180 150 125 None of the above 8 / 20 A firm produces 10 units of a commodity at an average total cost of ₹ 200 and with a fixed cost of ₹ 500. Find out the component of average variable cost in the total cost: ₹ 300 ₹ 200 ₹ 150 ₹ 100 9 / 20 A firm producing 7 units of output has an average total cost of ₹ 150 and has to pay ₹ 350 to its fixed factors of production whether it produces or not. How much of the average total cost is made up of variable costs? ₹ 200 ₹ 50 ₹ 300 ₹ 100 10 / 20 Average Fixed Cost = ₹ 20Quantity Produced =10 unitsWhat will be the Average Fixed Cost of 20th unit? ₹ 10 ₹ 20 ₹ 5 None 11 / 20 Marginal cost is defined as: The change in total cost due to a one unit change in output. Total cost divided by output. The change in output due to a one unit change in an input. Total product divided by the quantity of input. 12 / 20 A firm producing 7 units of output has an average total cost of ₹ 150 and has to pay ₹ 350 to its fixed factors of production. How much of the average total cost is made up of variable cost? ₹ 200 ₹ 50 ₹ 300 ₹ 100 13 / 20 U-shaped average cost curve is based on: Law of increasing cost Law of decreasing cost Law of constant returns to scale Law of variable proportions 14 / 20 A firm has a variable cost of ₹ 1000 at 5 units of output. If fixed costs are ₹ 400, what will be the average total cost at 5 units of output? ₹ 280 ₹ 60 ₹ 120 ₹ 1400 15 / 20 Which of the following statements is true of the relationship among the average cost functions? ATC = AFC – AVC. AVC = AFC + ATC. AFC = ATC + AVC. AFC = ATC – AVC. 16 / 20 With which of the following is the concept of marginal cost closely related? Variable cost. Fixed cost. Opportunity cost. Economic cost. 17 / 20 When shape of average cost curve is upward, marginal cost: Must be decreasing Must be constant Must be rising Any of these 18 / 20 MC curve of a firm in a perfectly competitive industry depicts? Demand curve Supply curve Average cost curve Total cost curve 19 / 20 Marginal cost changes due to change in ________ cost. Total Fixed Average Variable 20 / 20 The change in total cost due to one unit change in the output is called ________ cost. Marginal Average Average variable Average fixed Your score isThe average score is 55% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 12 Created on June 03, 2023 By admin COST QUIZ 6 1 / 20 AT 10 units Total Cost – ₹ 20020 units Total Cost – 600Marginal Cost = ? 50 40 30 400 2 / 20 If total cost at 10 units is ₹ 600 and ₹ 640 for 11th unit. The marginal cost of 11th unit is: ₹ 20 ₹ 30 ₹ 40 ₹ 50 3 / 20 Which of the following statements is correct? Fixed costs vary with change in output. If we add total variable cost and total fixed cost we get the average cost. Marginal cost is the result of total cost divided by number of units produced. Total cost is obtained by adding up the fixed cost and total variable cost. 4 / 20 Marginal cost changes due to changes in ________. Total cost Average cost Variable cost Quantity of output 5 / 20 With which of the following is the concept of marginal cost closely related? Variable cost. Fixed cost. Opportunity cost. Economic cost. 6 / 20 When AC Curve is at minimum then MC Curve is ________? Minimum then AC Curve Equals to AC Curve Above AC Curve Less than AC Curve 7 / 20 What happens to marginal cost when average cost increases? Marginal cost is below average cost Marginal cost is above average cost Marginal cost is equal to average variable cost Marginal cost is equal to average cost 8 / 20 When AC curve is rising, the MC curve must be ________ to it. Equal Above Below Parallel 9 / 20 Which of the following statements is correct? When the average cost is rising, the marginal cost must also be rising. When the average cost is rising, the marginal cost must be falling. When the average cost is rising, the marginal cost is above the average cost. When the average cost is falling, the marginal cost must be rising. 10 / 20 The total cost incurred for 10 units is ₹ 400 and 20 units is ₹ 800. Find the marginal cost. ₹ 400 ₹ 40 ₹ 200 ₹ 20 11 / 20 Which of the following is known as Envelope curve? Marginal Cost Curve Average Fixed Cost Curve Long Run Average cost Curve Total Fixed Cost Curve 12 / 20 Planning curve is related to which of the following? Short run average cost curve Long run average cost curve Average variable cost Average total cost 13 / 20 If LAC curve falls as output expands, this is due to : Law of diminishing returns Economics of scale Law of variable proportion Dis-economics of scale 14 / 20 Which of the following is true of the relationship between the marginal cost function and the average cost function? If MC is greater than ATC, then ATC is falling. The ATC curve intersects the MC curve at minimum MC. The MC curve intersects the ATC curve at minimum ATC. If MC is less than ATC, then ATC is increasing. 15 / 20 Which of the following statement is incorrect? AC is sloping downwards, MC is below AC AC is sloping downwards, MC must fall AC is sloping upwards, MC is above AC MC cuts AC from its lowest point. 16 / 20 External Economies arise due to: Growth of ancillary industries High cost of technologies Increase in the price of factors of production None of the above 17 / 20 The positively sloped (rising) part of the long run average cost curve indicates working of the ________. Diseconomies of scale Increasing returns to scale Constant returns to scale Economies of scale 18 / 20 A firm’s long-run average total cost curve is. Identical to its long-run marginal- cost curve as all factors are variable. Also its long-run total cost curve because it explains the relationship cost and quantity supplied in the long run. In fact the average total cost curve of the optimal plant in the short run as it tries to produce at least cost. Tangent to all short-run average total cost the curves and represents the lowest average total cost for producing each level of output. 19 / 20 The negatively-sloped (i.e. falling) part of the long-run average total cost curve is due to which of the following? Diseconomies of scale. Diminishing returns. The difficulties encountered in coordinating the many activities of a large firm. The increase in productivity that results from specialization. 20 / 20 Which of the following statements concerning the long-run average cost curve is false? It represents the least-cost input combination for producing each level of output. It is derived from a series of short- run average cost curves. The short-run cost curve at the minimum point of the long-run average cost curve represents the least-cost plant size for all levels of output. As output increases, the amount of capital employed by the firm increases along the curve. Your score isThe average score is 68% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 13 Created on June 03, 2023 By admin COST QUIZ 7 1 / 20 Suppose, the total cost of production of commodity X is ₹ 1,25,000. Out of this cost implicit cost is ₹ 35,000 and normal profits is ₹ 25,000. What will be the explicit cost of commodity X? 60,000 90,000 65,000 1,00,000 2 / 20 Which of the following statements is incorrect? Opportunity cost is also called alternative cost. If total revenue is divided by the number of units sold we get marginal revenue. The LAC curve is also called the planning curve of a firm. Total revenue = price per unit X number of units sold. 3 / 20 Implicit cost can be defined as ________. Money payments which the self owned and employed resources could have earned in their next best alternative employment and therefore entered into books of account. Money payments made to the non-owners of the firm for the self-owned factors employed in the business and therefore not entered into books of account. Money payments which the self owned and employed resources earn in their best use and therefore entered into books of ac-count. Money not paid out to the owners of the firm for the self owned factors employed in a business and therefore not entered into books of account. 4 / 20 External economics are enjoyed: Both (a) and (b) None of the above As firm expands By large producers only 5 / 20 xternal Economies of Scale are obtained by: A group of firm A firm Society Small Production 6 / 20 Supply curve remaining un-changed, an increase in demand will lead to. No change in price AN increase in supply A fall in price A rise in price 7 / 20 Economies of scale exist because as a firm increases its size in the long run: All of these. As a larger input buyer, the firm can get finance at lower cost and purchase inputs at a lower per unit cost. The firm can afford to employ more sophisticated technology in production. abour and management can specialize in their activities more. 8 / 20 Which of the following statements is true? Savings can be influenced by government policies. Accumulation of capital depends solely on income of individuals. External economies go with size and internal economies with loca¬tion. The supply curve of labour is an upward slopping curve. 9 / 20 Average Revenue Curve is also known as ________. Profit curve Supply curve Average cost curve Demand curve 10 / 20 Issue requiring decision making in the context of business are: All of the above How much should be the optimum output at what price should the firm sell? How will the product be placed in the market? How to combat the risks and uncertainties involved? 11 / 20 A firm will close down in the short period if its average revenue is less than its: Average fixed cost Marginal cost Average variable cost Average cost 12 / 20 Which of the following is an example of an “implicit cost”? The Payment of wages by the firm. Interest that could have been earned on retained earnings used by the firm to finance expansion. The interest payment made by the firm for funds borrowed from a bank. The payment of rent by the firm for the building in which it is housed. 13 / 20 Which of the following is an example of “explicit cost”? Concave, Decreasing Convex, Decreasing Concave, Increasing Convex, Increasing 14 / 20 Price of a commodity is best expressed as ________. Nominal value Exchange value Cost of goods sold Production cost 15 / 20 External economies can be achieved through: Foreign trade only Extension of transport and credit facilities Superior managerial skill External assistance 16 / 20 Which of the following equa¬tion represents profit maximization condition? MC > MR None MC = MR MC < MR 17 / 20 Economic cost excludes which of the following : Accounting cost + explicit cost Explicit cost + Implicit cost Accounting cost + opportunity cost Accounting cost + implicit cost 18 / 20 Which of the following is including in cost of production and is termed as accounting cost? Wages to workers employed All of these Fuel and Power Used Prices for the raw materials 19 / 20 Long run price is also called by the name of ________. Administered price Normal price Wholesale price. Market price 20 / 20 Implicit cost may be defined as the: Costs which the firm incurs but doesn’t disclose Costs which do not change over a period of time Money payment which the self employed resources could have earned in their best alternative employment. Payment to the non-owners of the firm for the resources Your score isThe average score is 63% LinkedIn Facebook Twitter VKontakte 0% Restart quiz
