Which of the Following Is a Common Assumption of Cost

question 118

Multiple Choice

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.

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Definitions:

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained in the other.

Equivalent Ratio

A proportion showing the equality between two ratios or fractions.

Equivalent Ratio

A ratio that has the same value when compared to another ratio, essentially representing the same proportional relationship.

Equivalent Ratio

A way to express the same relationship between two quantities as a ratio, even if the numbers in the ratio are different.