Which of the Following Assumptions Are Typically Made When Estimating

question 41

Multiple Choice

Which of the following assumptions are typically made when estimating costs?

• A)Costs are nonlinear and costs estimated for a specific level of activity are within the relevant range.
• B)Costs are linear and costs estimated for a specific level of activity are within the relevant range.
• C)Costs are nonlinear and total costs never exceed fixed costs.
• D)Costs are linear and total costs never exceed variable costs.
• E)None of the answer choices is correct.

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Definitions:

King Louis XVI

The last King of France before the fall of the monarchy during the French Revolution, executed for treason against the state in 1793.

French Revolution

A period of radical social and political upheaval in France (1789-1799) that significantly affected European and world history, characterized by its attempts to fundamentally redefine the structure of society.

Federalists

A political group in early U.S. history that advocated for a strong federal government and the ratification of the United States Constitution.