Part I-Multiple Choice -2 Points Each- Total 40 Points 1) A cost function is a A) process of caleulating present value of projected cash flows B) process of allocating costs to cost centers or cost objects C) mathematical description of how a cost changes with changes in the level of an activity relating to that cost D) is a very thorough and detailed way to identifying a cost objeet when there is a physical relationship between inputs and outputs 2) Bennet Company employs 20 individuals. Eighteen employees are paid S18 per hour and the rest are salaried employees paid $3,000 a month. Which of the following is the total cost function of personnel? 3) The cost components of a heater include S35 for the compressor, S11 for the sheet molded compound frame, and $74 per unit for assembly. The factory machines and tools cost is S55,000. The company expects to produce 1,300 heaters in the coming year. What cost function best represents these costs? A) y-55,000+120X B)y 1,300+55,000X C)y 55,000+ 1,300x D)y 1,300+120X 4) The cost function y 2,700+8x A) has a slope coefficient of 2,700 B) has an intercept of 8 C) is a straight line D) represents a fixed cost 5) Quantitative analysis methods estimate cost functions A) using the time-and-motion studies B) based on analysis and opinions gathered from various departments C) using a formal mathematical method to fit cost functions to past data observations D) using the pooling of knowledge from each value chain function 6) What is the name of a cost of production process that yields multiple produets simultaneously? A) byproduct B) joint C) main D) separable