Description in mathematical form to represent changes in cost, with level of activity related to that cost is classified as
A. cost function
B. revenue function
C. unit function
D. relative function
Answer: Option A
Solution(By Examveda Team)
Description in mathematical form to represent changes in cost, with level of activity related to that cost is classified as cost function. A cost function is a function of input prices and output quantity whose value is the cost of making that output given those input prices, often applied through the use of the cost curve by companies to minimize cost and maximize production efficiency.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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