Which of the Following Is the Major Assumption as to Cost

question 120

Multiple Choice

Which of the following is the major assumption as to cost and revenue behavior underlying conventional cost-volume-profit calculations?

• A)variability of fixed costs.
• B)variability of unit prices and efficiency.
• C)curvilinearity of relationships.
• D)linearity of relationships.

---

Definitions:

Nonrival-in-Consumption

A characteristic of a good or service where its consumption by one individual does not reduce its availability for consumption by others.

Common Good

A societal benefit that is shared and beneficial for all (or most) members of a community, such as clean air, public parks, and national defense.

Government Provision

The supply of goods or services provided by the government to its citizens, often funded by taxation.

Economic Goods

Products or services that have a positive economic value and thus are subject to scarcity, requiring consumers to make choices about their allocation.