Economic cost is the sum of________ a). Variable and fixed costs b). Variable, fixed and opportunity costs c). Fixed and opportunity costs d). Variable, fixed and marginal costs

Economic cost is the sum of________ a). Variable and fixed costs
b). Variable, fixed and opportunity costs
c). Fixed and opportunity costs
d). Variable, fixed and marginal costs
by

1 Answer

Answer :

b). Variable, fixed and opportunity costs
by

Related questions

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In context of net operating profit, which of the following statements are true? A. If all costs are variable, the amount of profit obtained in marginal costing and absorption costing will be same. B. If the volume of sales and output is equal in a period, profit will be same in absorption costing and marginal costing. C. Both a and b D. None of the above

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The fixed cost on such factors of production which are neither hired nor bought by the firm is called (1) social cost (2) opportunity cost (3) economic cost (4) surcharged cost

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If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Description : If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Last Answer : (1) 20000 Explanation: Breakeven quantity is the number of incremental units that the firm needs to sell to cover the cost of a marketing program or other type of investment. It is given by the formula: BEQ = FC / (P-VC) Where ... per unit = 30/12 = Rs. 2.5 So 20000/ (2.5-1.5) = 20000/1= Rs. 20,000

)If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm - (1) 24 (2) 18 (3) 36 (4) 60

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Last Answer : (3) 36 Explanation: The standard method of calculating average variable cost is to divide total variable cost by the quantity, illustrated by this equation : Average Variable Cost = Total Variable Cost/ Quantity of ... , Average Total Cost = 45000/2500 = 18 So Average Variable Cost = 54 - 18= 36

Prime cost is equal to - (1) Variable cost plus administrative cost (2) Variable cost plus fixed costs (3) Variable cost only (4) Fixed cost only

Description : Prime cost is equal to - (1) Variable cost plus administrative cost (2) Variable cost plus fixed costs (3) Variable cost only (4) Fixed cost only

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In estimation of cost functions, variations in a single activity level represents the A. related total costs B. related fixed cost C. related variable cost D. related per unit cost

Description : In estimation of cost functions, variations in a single activity level represents the A. related total costs B. related fixed cost C. related variable cost D. related per unit cost

Last Answer : A. related total costs

If the excavation of earth is done manually then it costs Rs. 10 per cum. A machine can excavate at a fixed cost of Rs. 4000 plus a variable cost of Rs. 2 per cum. The quantity of earth for which the cost of excavation by machine will be equal to the cost of manual excavation is (A) 500 cum (B) 1000 cum (C) 1500 cum (D) 2000 cum

Description : If the excavation of earth is done manually then it costs Rs. 10 per cum. A machine can excavate at a fixed cost of Rs. 4000 plus a variable cost of Rs. 2 per cum. The quantity of earth for which the cost ... the cost of manual excavation is (A) 500 cum (B) 1000 cum (C) 1500 cum (D) 2000 cum

Last Answer : (A) 500 cum

A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company's annual fixed costs? (a) Rs. 120 (b) Rs. 2,40,000

Description : A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company's annual fixed costs? (a) Rs. 120 (b) Rs. 2,40,000

Last Answer : 5,40,000

A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is: (a) 2,000 units (b) 3,000 units (c) 4,000 units (d) 6,000 units

Description : A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is: (a) 2,000 units (b) 3,000 units (c) 4,000 units (d) 6,000 units

Last Answer : (b) 3,000 units

3. S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period(a) 10.1% decrease (b) 11.2% decrease (c) 13.3% decrease (d) 16.0% decrea

Description : 3. S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25 ... period(a) 10.1% decrease (b) 11.2% decrease (c) 13.3% decrease (d) 16.0% decrease

Last Answer : (a) 10.1% decrease

The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted. However, the actual expenditure of Rs 300,000 was Rs. 18,000 over budget. What was the budget variable cost per unit?

Description :  The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted.  However, the actual expenditure of Rs 300,000 was Rs. 18,000 over budget. What was the budget variable cost per unit?

Last Answer : (a) Rs 1.20

Which is appropriate description of Average Costs? a) The value of opportunities which have been lost by utilizing resources in particular service or health technology. b) The total costs (i.e. all the costs incurred in the delivery of a service) of a health care system divided by the units of production. c) Independent of the number of units of production and include heating, lighting and fixed staffing costs. d) The cost of the consumption of medicines is a good example of variable costs.

Description : Which is appropriate description of Average Costs? a) The value of opportunities which have been lost by utilizing resources in particular service or health technology. b) The total costs (i.e. all the ... costs. d) The cost of the consumption of medicines is a good example of variable costs.

Last Answer : b) The total costs (i.e. all the costs incurred in the delivery of a service) of a health care system divided by the units of production. 

If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Description : If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Last Answer : 20000

If the average total cost is Rs. 54, total fixed cost is Rs. 45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm : (1) 24 (2) 18 (3) 36 (4) 60

Description : If the average total cost is Rs. 54, total fixed cost is Rs. 45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm : (1) 24 (2) 18 (3) 36 (4) 60

Last Answer : 36

Prime cost is equal to (1) Variable cost plus administrative cost (2) Variable cost plus fixed costs (3) Variable cost only (4) Fixed cost only

Description : Prime cost is equal to (1) Variable cost plus administrative cost (2) Variable cost plus fixed costs (3) Variable cost only (4) Fixed cost only

Last Answer : Variable cost plus administrative cost

The law of diminishing (marginal) returns states that as more of a variable factor is added to a certain amount of a fixed factor, beyond some point: a. Total physical product begins to fall b. The marginal physical product rises c. The marginal physical product falls d. The average physical product falls

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Last Answer : c. The marginal physical product falls

In economic theory, in the short run all the cost are…………… (a) Fixed ; (b) Variable ; (c) Controllable ; (d) Semi variable

Description : In economic theory, in the short run all the cost are…………… (a) Fixed ; (b) Variable ; (c) Controllable ; (d) Semi variable

Last Answer : (a) Fixed ;

A period in the ontogeny of crop at which maximum crop weed competition occurs is called a). Economic threshold b). Gain threshold c). Competitive threshold d). None

Description : A period in the ontogeny of crop at which maximum crop weed competition occurs is called a). Economic threshold b). Gain threshold c). Competitive threshold d). None

Last Answer : d). None

. A shortest time span in the life cycle of a crop when weeding results in highest eco nomic returns a). Economic threshold b). Critical period c). Competitive threshold d). None of these

Description : . A shortest time span in the life cycle of a crop when weeding results in highest eco nomic returns a). Economic threshold b). Critical period c). Competitive threshold d). None of these

Last Answer : b). Critical period

The producer usually is most concerned about the a). Competitive threshold b). Economic threshold c). Both a and b d). None of the above

Description : The producer usually is most concerned about the a). Competitive threshold b). Economic threshold c). Both a and b d). None of the above

Last Answer : b). Economic threshold

What effect does an increase in volume have on A UNIT FIXED COSTS B UNIT VARIABLE COSTS C Total Fixed Costs D Total Variable Costs?

Description : What effect does an increase in volume have on A UNIT FIXED COSTS B UNIT VARIABLE COSTS C Total Fixed Costs D Total Variable Costs?

Last Answer : Feel Free to Answer

Implicit costs are (a) equal to total fixed costs (b) comprised entirely of variable costs (c) payments for self-employed resources(d) always greater in the short run than in the long run

Description : Implicit costs are (a) equal to total fixed costs (b) comprised entirely of variable costs (c) payments for self-employed resources (d) always greater in the short run than in the long run

Last Answer : (c) payments for self-employed resources

The crossover chart for l t for location break-even analysis shows where a. fixed costs are equal for alternative locations b. variable costs are equal for alternative variable costs are equal for alternative locations locations c. total costs are equal for alternative locations d. fixed costs equal variable

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Last Answer : c. total costs are equal for alternative locations

Realising that his new video game will be on the edge of contributing some profit in its second year, Gary lobbies hard to have the accounting department assign other projects in the firm higher levels of certain arbitrarily assigned costs. These costs are called __________ costs. A)fixed B)variable C)traceable common D)nontraceable common

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Last Answer : D)nontraceable common

To determine the breakeven point in units, one divides fixed costs by: A)total costs. B)variable costs times price. C)price minus variable costs. D)price per unit.

Description : To determine the breakeven point in units, one divides fixed costs by: A)total costs. B)variable costs times price. C)price minus variable costs. D)price per unit.

Last Answer : C)price minus variable costs.

Sinking fund is (A) The fund for rebuilding a structure when its economic life is over (B) Raised to meet maintenance costs (C) The total sum to be paid to the municipal authorities by the tenants (D) A part of the money kept in reserve for providing additional structures and structural modifications

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Last Answer : (A) The fund for rebuilding a structure when its economic life is over