Which of the Following Statements Related to Assumptions About Estimating

Question 10
Multiple Choice

Which of the following statements related to assumptions about estimating linear cost functions is TRUE? A)Variations in a single cost driver explain variations in total costs. B)A cost object is anything for which a separate measurement of costs is desired. C)A linear function approximates cost behaviour at all ranges of production. D)Correlation refers to the relationship between fixed and variable costs. E)The graph of total costs does not form a straight line within the relevant range because of variable costs.