Which of the following cost behaviors cannot be accurately represented by a single straight line?
A)Step costs
B)Mixed costs
C)Fixed costs
D)Variable costs

Question

Quizplus · Accepted Answer

Step costs have a stair-step pattern because the cost remains constant within a certain level of activity, but increases to a new level once activity exceeds a certain threshold. Therefore, it cannot be accurately represented by a single straight line. Mixed costs have both fixed and variable components and can be represented by a straight line within the relevant range. Fixed costs remain constant and can be represented by a horizontal straight line. Variable costs change proportionately with activity and can be represented by a sloping straight line.

Which of the Following Cost Behaviors Cannot Be Accurately Represented