menu
Sign up

A Linear Cost Function Is a Function in Which the Graph

Question 1
True False

A linear cost function is a function in which the graph of total costs versus a single cost driver forms a straight line, within the relevant range.

True

Related questions
Q 2
When estimating linear cost functions, it is assumed that variations in total cost of a cost object cannot be explained by variations in a single cost driver.
Q 3
A mixed cost has a fixed element.
Q 4
Correctly identifying the cost driver and separating fixed from variable costs are important inputs for many management decisions.
logo
© 2020-2021 Cozyplus FZ LLC. All rights reserved