Cost behavior can be mathematically expressed using equations.

Question

Quizplus · Accepted Answer

Cost behavior can indeed be mathematically expressed using various equations, such as the linear equation (y = mx + b) or the quadratic equation (y = ax^2 + bx + c), depending on the nature and pattern of the cost's response to changes in activity levels or other drivers. These equations can then be used to predict or estimate future costs, as well as to analyze and compare different cost structures and behaviors.

Cost Behavior Can Be Mathematically Expressed Using Equations