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</p> Signup and view all the answers

    At what volume does total revenue equal total cost?

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

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

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

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

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

    What does linear programming consist of?

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

    What do decision variables represent?

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

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