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# MCQ - Theory of Cost CA Foundation Notes | EduRev

## CA Foundation : MCQ - Theory of Cost CA Foundation Notes | EduRev

``` Page 1

1. Which Cost Increases Continuously
With the Increase in Production?
a) Average cost
b) Marginal cost
c) Fixed cost
d) Variable cost
Page 2

1. Which Cost Increases Continuously
With the Increase in Production?
a) Average cost
b) Marginal cost
c) Fixed cost
d) Variable cost
2. Which of the Following Cost Curves is
Never U-shaped?
a)Average cost curve
b) Marginal cost curve
c) Average variable cost curve
d) Average fixed cost curve
Ans. (d)
Page 3

1. Which Cost Increases Continuously
With the Increase in Production?
a) Average cost
b) Marginal cost
c) Fixed cost
d) Variable cost
2. Which of the Following Cost Curves is
Never U-shaped?
a)Average cost curve
b) Marginal cost curve
c) Average variable cost curve
d) Average fixed cost curve
Ans. (d)
a) Cost of raw material
b) Cost of equipment
c)Interest payment on past borrowings
d)Payment of rent on building
Ans. (a)

3. Total cost in the short run is classified into fixed costs
and variable costs. Which one of the following is a
variable cost?
Page 4

1. Which Cost Increases Continuously
With the Increase in Production?
a) Average cost
b) Marginal cost
c) Fixed cost
d) Variable cost
2. Which of the Following Cost Curves is
Never U-shaped?
a)Average cost curve
b) Marginal cost curve
c) Average variable cost curve
d) Average fixed cost curve
Ans. (d)
a) Cost of raw material
b) Cost of equipment
c)Interest payment on past borrowings
d)Payment of rent on building
Ans. (a)

3. Total cost in the short run is classified into fixed costs
and variable costs. Which one of the following is a
variable cost?

4. In the Short Run, When the Output of a
Firm Increases, Its Average Fixed Cost:

a) Increases
b) Decreases
c) Remains constant
d) First declines and then rises
Ans. (b)
Page 5

1. Which Cost Increases Continuously
With the Increase in Production?
a) Average cost
b) Marginal cost
c) Fixed cost
d) Variable cost
2. Which of the Following Cost Curves is
Never U-shaped?
a)Average cost curve
b) Marginal cost curve
c) Average variable cost curve
d) Average fixed cost curve
Ans. (d)
a) Cost of raw material
b) Cost of equipment
c)Interest payment on past borrowings
d)Payment of rent on building
Ans. (a)

3. Total cost in the short run is classified into fixed costs
and variable costs. Which one of the following is a
variable cost?

4. In the Short Run, When the Output of a
Firm Increases, Its Average Fixed Cost:

a) Increases
b) Decreases
c) Remains constant
d) First declines and then rises
Ans. (b)

5. Which One of the Following is Also
Known as Planning Curve?
a) Long run average cost curve
b) short run average cost curve
c) Average variable cost curve
d) Average total cost curve
Ans. (a)
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50 docs|33 tests

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