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:

Disintermediation

The removal of intermediaries from a supply chain or business process, often through direct transactions between producers and consumers facilitated by digital technologies.

Porter's Five Forces

A framework for analyzing the competitive forces within an industry, including competition, potential entrants, substitute products, bargaining power of suppliers, and bargaining power of customers.

WAN

A Wide Area Network is a telecom network that spans a vast geographic area, mainly designed for connecting computers.

LAN

A Local Area Network is a computer network that interconnects computers within a limited area such as a residence, school, laboratory, or office building.