Cost Concepts and Decision Making Quiz
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Questions and Answers

What is the portion of the total cost that does not depend on the volume?

  • Variable cost
  • Marginal cost
  • Marginal revenue
  • Fixed cost (correct)

Which cost is the rate of change of the total cost with respect to volume?

  • Variable cost
  • Marginal revenue
  • Fixed cost
  • Marginal cost (correct)

What does linear programming consist of?

  • Non-linear relationships representing a firm’s decision(s), given an objective and resource constraints
  • Only linear relationships without any constraints
  • Linear relationships representing a firm’s decision(s), given an objective and resource constraints (correct)
  • Linear relationships without any objective function

What do decision variables represent?

<p>Levels of activity (C)</p> Signup and view all the answers

At what volume does total revenue equal total cost?

<p>Breakeven point (C)</p> Signup and view all the answers

What is the portion of the total cost that is dependent on and varies with the volume?

<p>Variable cost (B)</p> Signup and view all the answers

What is the rate of change of the total cost with respect to volume?

<p>Marginal cost (D)</p> Signup and view all the answers

What is the rate of change of total revenue with respect to volume?

<p>Marginal revenue (A)</p> Signup and view all the answers

What does linear programming consist of?

<p>Linear relationships (D)</p> Signup and view all the answers

What do decision variables represent?

<p>Levels of activity (A)</p> Signup and view all the answers

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