Which of the Follow Is Not an Assumption When Estimating

question 57

Multiple Choice

Which of the follow is not an assumption when estimating a cost function over the relevant range of activity?

• A) Mixed costs will change in total
• B) Mixed costs will change per unit
• C) Variable costs will be constant in total
• D) Fixed costs will be constant in total.

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Definitions:

Net Requirements

The actual amount of materials or resources needed for production, calculated after considering the on-hand inventory and pending orders, to meet the production schedule.

Part B

Often associated with Medicare, Part B refers to medical insurance coverage for certain services and products not covered by Part A.

Gross Material Requirements Plan

A comprehensive schedule that projects the raw materials needed to meet production demands, factoring in inventory levels and supply lead times.

Time-Phased Schedule

A detailed timeline that outlines when specific tasks or activities should be completed, often used in project management and manufacturing to ensure processes are aligned.