A Nonlinear Cost Function

question 108

Multiple Choice

A nonlinear cost function

• A) has two constants and a single slope.
• B) does not effectively describe the behaviour of costs all of the time.
• C) never describes the behaviour of costs in relation to the cost driver.
• D) always describes the behaviour of costs in relation to the cost drivers.
• E) means the relevant range cannot be determined for that cost.

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Definitions:

Round

A shape having a continuous curve without edges or corners, often used in geometry and design; alternatively, it can refer to advancing or modifying numbers to a specific degree of precision.

Average

A statistical measure representing the central or typical value in a set of data, calculated by dividing the sum of all values by the number of values.

Sum

The result of adding two or more numbers or quantities together, totaling their combined value.

Min Function

A computing function that returns the smallest value in a given set of numbers or arguments.