An algebraic equation used by managers to describe the relationship between a cost and its cost drivers) is called a _____.
A)cost behavior
B)cost function
C)budget
D)cost analysis

Question

Quizplus · Accepted Answer

The term "cost function" specifically refers to an algebraic equation that managers use to describe the relationship between a cost and its cost drivers. Cost behavior refers to how a cost changes as a result of changes in the level of activity, while a budget is a financial plan for a future period. Cost analysis is a broader term that can refer to any analysis of costs, including examining cost behavior or using a cost function. However, the specific term used to describe the equation is a "cost function."

An Algebraic Equation Used by Managers to Describe the Relationship