Which of the Following Statements Regarding a Linear Cost Function

question 73

Multiple Choice

Which of the following statements regarding a linear cost function is true?

• A) When there are only fixed costs, total material costs increase as the number of units produced increases.
• B) The slope coefficient of a mixed cost line intersects the vertical axis at zero.
• C) The relationship between the cost driver and the fixed cost is represented by the cost-benefit relationship.
• D) It is easier to identify a single measure of benefit in a more heterogeneous cost pool.
• E) A linear cost function for manufacturing overhead can be graphed when the reported benefit received can be paired with the corresponding dollar value of the cost pool.

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