Cost behavior and Cost estimation MCQs


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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 variable and fixed cost relationships?


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


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


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


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