Accountants Sometimes Use a Linear Cost Model for Nonlinear Costs

question 88

Multiple Choice

Accountants sometimes use a linear cost model for nonlinear costs because_____.

• A)a nonlinear model is too difficult for managers to interpret
• B)a nonlinear model is too difficult to develop
• C)the cost of using models that are more accurate may exceed the benefit of greater accuracy
• D)all of these answers are correct

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Definitions:

Obsessions

Persistent, unwanted thoughts, images, or urges that cause distress or anxiety.

Compulsions

Repetitive behaviors or mental acts that an individual feels driven to perform in response to an obsession or according to rules that must be applied rigidly.

Desensitization

A technique used to reduce or eliminate an organism's response to a stimulus by repeated exposure to that stimulus.

Implosion

A rapid inward collapse of a structure or material, often used in psychology to refer to a therapeutic technique for confronting fears.