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Costs of Production Quiz

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Costs of Production Quiz

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Fundamentals of production costs

Created by

HORTENCIA ERNESTINA VASQUEZ DE GUERRERO
HORTENCIA ERNESTINA VASQUEZ DE GUERRERO
El Salvador

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Costs of Production Quiz
 

Costs of Production QuizOnline version

Fundamentals of production costs

by HORTENCIA ERNESTINA VASQUEZ DE GUERRERO
1

What does CT stand for in production cost terms?

2

Which cost remains the same regardless of output level?

3

What is CV in the cost formulas?

4

Formula for CFM equals?

5

How is CVM calculated?

6

What does CMT represent?

7

Which formula gives the unit cost of producing one unit?

8

What does CMg measure?

9

Which item is an example of a fixed cost from the text?

10

Which item is a variable cost from the text?

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CT equals CF + CV, total invested in production.

CF do not vary with Q; examples: rent, fixed salaries.

CV changes with production; example: flour, packaging.

CFM is fixed cost per unit produced.

CVM is variable cost per unit produced.

CMT is CT divided by Q, or sum of CFM and CVM.

CMT is total cost per unit; alternative form CFM+CVM.

CMg = ΔCT / ΔQ, cost of one more unit.

Examples of fixed costs: rent, fixed salaries.

Variable costs change with production; harina is per unit.

 
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