All of the following are assumptions for developing and using a cost linear function except:
A)Past costs rarely need updating to be good predictors of future costs
B)Operations are within the relevant range
C)Variable costs remain constant within the relevant range
D)Fixed costs remain fixed within the relevant range

Question

Quizplus · Accepted Answer

Developing and using a cost linear function assumes that past costs can be used as a good predictor of future cost behavior. However, past costs may need updating to adjust for changes in the business environment, inflation, or other factors that could affect costs. Therefore, option A is the incorrect assumption. Options B, C, and D are all correct assumptions for developing and using a cost linear function.

All of the Following Are Assumptions for Developing and Using