Which Statement Related to Assumptions About Estimating Linear Cost Functions

question 49

Multiple Choice

Which statement related to assumptions about estimating linear cost functions is FALSE?

• A)A cost object is anything for which a separate measurement of costs is desired.
• B)A linear function approximates cost behaviour within the relevant range of the cost driver.
• C)Variations in a single cost driver explain variations in total costs.
• D)A high correlation between two variables ensures that a cause-and-effect relationship exists.

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The act of aligning one's emotional responses with those of a group, often to fit in or be accepted.

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