Question Details

A cost function is a mathematical description




1) The cost function y = 10,000 + 3X ________.
A) represents a mixed cost 
B) will intersect the y-axis at 3
C) has a slope coefficient of 10,000 
D) is a curved line 


2) Which of the following functions represents the least total cost assuming the number of units is equal in each case?
A) y = 180 + 7X
B) y = 90 + 6X
C) y = 90 + 7X
D) y = 180 + 6X


3) Which of the following is an equation of a fixed cost function? 
A) y = (a + b)X 
B) y = a + bX 
C) y = bX 
D) y = a 

4) One assumption frequently made in cost behavior estimation is that changes in total costs can be explained by changes in the level of a single activity. 


5) A cost function is a mathematical description of how a cost changes with changes in the level of an activity relating to that cost.





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