Question Details

 A finance manager has to select one of the four different suppliers of raw materials




1) Which of the following statements is true of a linear cost function?
A) It presents variable cost as a slope coefficient.
B) It presents total cost as an intercept.
C) It presents variable cost as an intercept.
D) It presents total cost as slope coefficient.


2) A finance manager has to select one of the four different suppliers of raw materials. The total cost functions under the four options are given below. Assume the quality of the raw material to be the same, which of the following is preferred by the finance manager?
A) y = 200 + 5X
B) y = 200 + 5.50X
C) y = 200 + 4.50X
D) y = 200 + 4.70X


3) If the total cost function is y = 5,000 + 7X, calculate the variable cost for 4,000 units.
A) $33,000
B) $28,000
C) $20,000
D) $5,000

4) The cost function y = 2,000 + 6X ________.
A) has a slope coefficient of 2,000 
B) has an intercept of 6 
C) is a straight line 
D) represents a fixed cost 


5) The cost function y = 150 + 10X ________.
A) has a slope coefficient of 150 
B) has an intercept of 150 
C) is a nonlinear 
D) represents a fixed cost 




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help