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THEORY OF COST - CH 3 QUIZ

1 / 100

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 ________.

2 / 100

Which of the following is a vari-able cost in the short run₹

3 / 100

Which one of the following is an example of Sunk Cost?

4 / 100

Cost Functions are derived from ________ cost data of the firms.

5 / 100

With which of the following is the concept of marginal cost closely related?

6 / 100

Which of the following in incurred first?

7 / 100

________ Costs do not change with changes in Output.

8 / 100

The concept of opportunity cost has to be considered whenever :

9 / 100

Which statement among below is correct in reference in Average Fixed Cost.

10 / 100

U-shaped average cost curve is based on:

11 / 100

Semi-Variable Costs are ________ Variable, ________ fixed in relation to the changes in the size of output.

12 / 100

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?

13 / 100

In a cost function, the dependent variable is unit cost or total cost and the independent variable(s)are ________.

14 / 100

Opportunity Cost is ________

15 / 100

Marginal cost changes due to changes in ________.

16 / 100

The negatively-sloped (i.e. falling) part of the long-run average total cost curve is due to which of the following?

17 / 100

Which of the following is a kind of Cost function?

18 / 100

The Cost function expresses the relationship between ________ and ________.

19 / 100

Direct Cost is also known as :

20 / 100

A firms AFC is ₹ 200 at 10 units of output what will be it at 20 units of output?

21 / 100

Which of the following curves never tough any axis but is downward ________.

22 / 100

The total Cost Curve is obtained by adding ________ the ________ curve and the Curve.

23 / 100

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₹

24 / 100

Marginal cost is defined as:

25 / 100

Which cost increases continuously with the increase in production?

26 / 100

Private Costs are costs actually incurred or provided for by firms. These may be ________.

27 / 100

Which of the following statement is incorrect?

28 / 100

In the long run all factors are ________.

29 / 100

Cost Function is the mathemati-cal relation between ________ of a Product and the various determinants of ________.

30 / 100

Which of the following statements is correct concerning the relationships among the firm’s cost functions?

31 / 100

Average fixed cost can be obtained through:

32 / 100

Which one of the following is correct?

33 / 100

When AC Curve is at minimum then MC Curve is ________?

34 / 100

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 ________.

35 / 100

Total Fixed cost curve

36 / 100

Opportunity cost is the ________ value that is foregone in choosing one activity over the alternative.

37 / 100

Which of the following is part of incremental costs?

38 / 100

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:

39 / 100

________ Costs normally figure in business decisions as they Form part of total cost and are inter-nalized by the firm.

40 / 100

________ Cost refers to the cost incurred in the past on the acquisition of a productive asset

41 / 100

With which of the following is the concept of marginal cost closely related?

42 / 100

________ costs are the costs that are readily identified and are traceable to a particular product, operations or plant.

43 / 100

Opportunity Cost is the cost of the ________ opportunity and involves a comparison between the policy that was ________ and the policy that was ________.

44 / 100

The change in total cost due to one unit change in the output is called ________ cost.

45 / 100

Other things remaining the same, an increase in price will make ________ cost higher than ________ cost.

46 / 100

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?

47 / 100

Average Fixed Cost = ₹ 20
Quantity Produced =10 units
What will be the Average Fixed Cost of 20th unit?

48 / 100

Usually in the case of continuous decrease in price of an asset, which one of the following shall be the highest?

49 / 100

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:

50 / 100

Total cost in the short run is clas-sified into fixed costs and variable costs. Which one of the following is a variable cost?

51 / 100

Electricity charges include both a fixed charge and a charge based on consumption. It should be classified as ________.

52 / 100

External Economies arise due to:

53 / 100

Fixed cost curve normally:

54 / 100

________ may vary according to the changes accruing to the product process or machine.

55 / 100

The Semi-Variable Cost: ________

56 / 100

The slope of Average Fixed cost curve is?

57 / 100

________ refer to those costs which are already incurred once and for all and cannot be recovered.

58 / 100

Fixed costs may also be called as:

59 / 100

Theoretically, incremental costs are related to the concept of ________.

60 / 100

Marginal cost changes due to change in ________ cost.

61 / 100

If total cost at 10 units is ₹ 600 and ₹ 640 for 11th unit. The marginal cost of 11th unit is:

62 / 100

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?

63 / 100

Fixed costs are ________ a function of output.

64 / 100

________ are those costs which change with changes in output.

65 / 100

MC curve of a firm in a perfectly competitive industry depicts?

66 / 100

If a Firm shuts down for a short period, it will not incur any ________ cost.

67 / 100

Which of the following statements is correct?

68 / 100

Which of the following statements is true of the relationship among the average cost functions?

69 / 100

The total cost incurred for 10 units is ₹ 400 and 20 units is ₹ 800. Find the marginal cost.

70 / 100

The vertical difference between TVC and TC curves is equal to:

71 / 100

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

72 / 100

Which of the following cost curves is never ‘U’ shaped?

73 / 100

What happens to marginal cost when average cost increases?

74 / 100

Which of the following curves never touch any axis but is downward.

75 / 100

What is the total cost of produc-tion of 20 units, if fixed cost ₹ 5,000 and variable cost is ₹ 2/-?

76 / 100

Identify the indirect Cost

77 / 100

Cost function is a function which is obtained from ________.

78 / 100

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?

79 / 100

A firm’s average fixed cost is ₹ 40 at 12 units. What will be the average fixed cost at 8 units:

80 / 100

When AC curve is rising, the MC curve must be ________ to it.

81 / 100

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?

82 / 100

Which of the following statements concerning the long-run average cost curve is false?

83 / 100

Which of the following is known as Envelope curve?

84 / 100

AT 10 units Total Cost – ₹ 200
20 units Total Cost – 600
Marginal Cost = ?

85 / 100

If a firm’s output is zero, then:

86 / 100

Suppose output increases in the short run. Total cost will

87 / 100

When shape of average cost curve is upward, marginal cost:

88 / 100

Which of the following is not a determinant of the firm’s cost function?

89 / 100

The Cost of resources for which the firm is not required to pay price is called as ________ cost.

90 / 100

Which of the following statements is correct?

91 / 100

A firm’s long-run average total cost curve is.

92 / 100

When the output of a firm increase in the short run, its average fixed cost.

93 / 100

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?

94 / 100

Which of the following is true of the relationship between the marginal cost function and the average cost function?

95 / 100

If LAC curve falls as output expands, this is due to :

96 / 100

Average fixed cost curve is always:

97 / 100

Planning curve is related to which of the following?

98 / 100

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:

99 / 100

The positively sloped (rising) part of the long run average cost curve indicates working of the ________.

100 / 100

A firm’s average fixed cost is ₹ 20 at 6 units of output. What will it be at 4 units of output?

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