Ask Question
21 April, 03:09

What assumption (s) are frequently made when estimating a cost function? A. Variations in the level of a single activity explain the variations in the related total costs. B. Cost behavior is approximated by a linear function within the relevant range. C. Both of the above. D. Neither of the above.

+2
Answers (1)
  1. 21 April, 03:54
    0
    Answer: The correct answer is "C. Both of the above.".

    Explanation: Generally, when estimating a cost function, assumptions are frequently made that the variations in the level of a single activity have as a consequence and are the cause of the variations that occur in the total related costs.

    It is also assumed that the behavior of a cost can be approximated through a linear function within the relevant range.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “What assumption (s) are frequently made when estimating a cost function? A. Variations in the level of a single activity explain the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers