A Cost with a Flat Cost Line Within a Relevant

question 68

Multiple Choice

A cost with a flat cost line within a relevant range that shifts to another level when volume significantly changes is a(n) :

• A)Step-wise cost.
• B)Fixed cost.
• C)Curvilinear cost.
• D)Incremental cost.
• E)Flat line cost.

---

Definitions:

Consequential Damages

Indirect damages that do not flow directly from the act but occur as a consequence of the initial act, often involving loss of profit or other secondary losses.

Liquidated Damages

A pre-determined sum agreed upon by parties in a contract as compensation for breach of contract, where actual damages are difficult to ascertain.

Doctrine

A principle or body of principles presented for acceptance or belief by a religious, political, scientific, or philosophic group.