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

Understand historical shifts in production methods and their impact on business size and structure.

Describe the interdependency between small and large businesses.

Recognize the significant representation of small businesses in the service sector.

Understand the rise in entrepreneurship education and the factors contributing to the increase in small business formation.

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Definitions:

Extinct

A status describing species that no longer exists anywhere on Earth.

Amphibians

Cold-blooded vertebrates that include frogs, toads, salamanders, and newts, known for their ability to live both in water and on land during different life stages.

Atmospheric CO₂

The concentration of carbon dioxide in Earth's atmosphere, a crucial factor influencing climate change and global temperatures through the greenhouse effect.

Keystone Species

A species on which other species in an ecosystem largely depend, such that if it were removed the ecosystem would change drastically.