Which of the following is a common assumption of cost estimation?
A) Cost behavior depends on many cost drivers.
B) Cost behavior patterns are nonlinear outside of the relevant range.
C) Cost behavior patterns are linear within the relevant range.
D) Costs are curvilinear.

Question

Quizplus · Accepted Answer

Cost estimation often assumes that cost behavior patterns are linear within the relevant range, meaning costs change at a constant rate with changes in activity level within this range.

Which of the Following Is a Common Assumption of Cost