Cost Behavior and Cost Estimation MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on November 16, 2021

1. Which of the following is true about variable costs?

2. Variable costs with a linear relationship to changes in activity are referred to as:

3. Which of the following statements is true about fixed costs within the relevant range?

4. Which of the following is a good example of the equation or cost function that represents the variable and fixed cost relationships?

5. Which of the following is true about the high-low method?

6. Assuming a linear cost relationship, if fixed costs are $1,200 and variable costs are $5 per unit, what is the total cost for 600 units?

7. Which of the following is described as the process of determining how a particular cost behaves?

8. Which of the following describes the flow of the relationship between cost behavior, cost prediction, and cost estimation?


 


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True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.

Related posts:

  1. Budget | Definition, Explanation, and Classification With Examples
  2. Reconciliation of Cost Accounts and Financial Accounts
  3. Classification of Cost
  4. Elements and Components of Cost
  5. Income Statement

2 thoughts on “Cost Behavior and Cost Estimation MCQs”

    • Thanks! Let us know what other kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!

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