What Assumption About the Behaviour of Total Costs Occurs Within

question 33

Multiple Choice

What assumption about the behaviour of total costs occurs within the relevant range of activity?

• A)linear and upward sloping
• B)linear and downward sloping
• C)curvilinear and upward sloping
• D)horizontal

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Definitions:

Net Adjustment

Modifications made to the net income or net loss of a company to reconcile with cash flow or other financial statements.

Unamortized Patent

The cost of a patent that has not yet been gradually written off against profits over its useful life.

Equity Income

Income earned by an investor through dividends or distributions from equity investments or ownership interests in companies.