Which statement is true concerning curvilinear variable cost functions?
A)Curvilinear variable cost functions have both fixed and variable components which vary in constant proportion.
B)Curvilinear variable cost functions increase in logical steps which vary in constant proportion.
C)Curvilinear variable cost functions always involves long-term assets which vary in constant proportion.
D)Curvilinear variable cost functions are where costs vary with the volume of activity,but not in constant proportion.

Question

Quizplus · Accepted Answer

Curvilinear variable cost functions are characterized by costs that vary with the level of activity, but not in a constant proportion. As the level of activity increases, the rate of increase in costs may change, resulting in a curved relationship between cost and activity. This is in contrast to linear variable cost functions, where costs increase in direct proportion to changes in the level of activity. Curvilinear variable cost functions do not necessarily have fixed and variable components, nor do they involve long-term assets.

Which Statement Is True Concerning Curvilinear Variable Cost Functions