Which Type of Cost Behavior Is Indicated by the Following

question 85

Multiple Choice

Which type of cost behavior is indicated by the following graphs?

• A)Step
• B)Fixed
• C)Curvilinear
• D)Variable

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy, indicating the cost of living or inflation rate.

Falling Prices

A situation in an economy where the prices of goods and services decrease over time.

Extraordinarily High Inflation

A situation where the rate of inflation becomes extremely high and uncontrollable, eroding purchasing power and destabilizing the economy.

Budget Deficit

The financial situation where government’s expenditures exceed its revenues within a specific time period, leading to borrowing or debt accumulation.