Which of the Following Cost Behaviors Cannot Be Accurately Represented

question 281

Multiple Choice

Which of the following cost behaviors cannot be accurately represented by a single straight line?

• A)Variable costs
• B)Mixed costs
• C)Fixed costs
• D)Step costs

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Definitions:

Reporting Principles

The foundational guidelines that govern the preparation and presentation of financial reports, ensuring accuracy, consistency, and transparency.

Historical Cost Principle

An accounting principle that requires financial statements to be based on the original cost of an asset, rather than its current market value.

Consistency Principle

An accounting principle that requires entities to apply the same accounting methods and policies from period to period unless a change is justified and disclosed.

Accounting Methods

The specific rules and procedures used by a business to prepare its financial statements, including how it recognizes revenue and expenses.