A mathematical description of how a cost changes with changes in the level of an activity relating to that cost is a ________.
A)cost function
B)mixed cost
C)semivariable cost
D)nonlinear cost function
E)step cost function

Question

Quizplus · Accepted Answer

A cost function is a mathematical representation of how costs vary with changes in the level of activity. It can be either linear or nonlinear. Choices B, C, D, and E are different types of costs, but they do not provide a mathematical description of how the costs change with changes in the level of activity.

A Mathematical Description of How a Cost Changes with Changes