In CVP Analysis, Managers Usually Assume That the Cost Function

question 11

Multiple Choice

In CVP analysis, managers usually assume that the cost function is linear. Which of the following equations best represents a linear function for total cost if the cost is a mixed cost?

• A) y = $200 + $60x
• B) y = $60x2
• C) y = $60x
• D) y = $200

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