Vidyalelo
Commerce · Q369

Costing

Graduate and Post Graduate · Commerce · question 369

Q369

Cost pattern, when production inputs are to be used in discrete functions, but quantities are fractional, will be categorized as

A.
continuously variable cost function
Answer
B.
fixed cost function
C.
mixed cost function
D.
semi variable cost function

Answer: Option A

Solution

Answer: Option A
Solution:
Cost pattern, when production inputs are to be used in discrete functions, but quantities are fractional, will be categorized as continuously variable cost function. A variable cost is a corporate expense that changes in proportion to production output.