Match the alternative linear cost function with the definition given. 1) A cost function in which total cost change in proportion to the changes in the level of activity in the relevant range. 2) A cost function in which total cost do not change with changes in the level of activity in the relevant range. 3) A cost function that has both fixed and variable elements. Total cost change but not in the proportion to the changes in the level of activity in the relevant range.

A) Fixed Cost Function B) Mixed Cost Function C) Variable Cost Function. What is the difference between a linear and a nonlinear cost function? Give an Example of Each type of cost function. A) A linear cost function is a cost function where, within the relevant range, the graph of total cost versus the level of a single activity related to that cost is not a straight line. An example of a linear cost function is a cost function for use of a copier where the terms are a fixed lease payment of $1,000 per month plus a $0.01 per range charge for each copy.

A nonlinear cost function is a cost function where, within the relevant range, the graph of total cost versus the level of single activity related to that cost is a straight line. Carranza more. Examples include quantity discounts for material purchases for each 1,000 units of material purchased. The cost per unit of material will fall for each 1,000 unties purchased at a time. B) A linear cost function is a cost function where, within the relevant range, the graph of total cost versus the level of a single activity related to that cost is a straight line. An example of a liner cost function is a cost function for use of a telephone line where the terms are a fixed charge of $10,000 per year plus a $2 per minute charge for phone use.

A nonlinear cost function is a cost function where, within the relevant range, the graph of total cost versus the level of a single activity related to that cost is not a straight line. Example include economies of scale in advertising where an agency can double the number of advertisements for less than twice the costs, step-cost functions, and learning-curve based costs. C) A linear cost function is a cost function where, within the relevant range, the graph of total cost versus the level of a single activity related to that cost is a straight line. Examples include economies of scale in advertising where an agency can double the number of advertisements for less than twice the costs, step-cost functions, and learning-curve based costs. A nonlinear cost function is a cost function where, within the relevant range, the graph of total cost versus the level of a single activity related to that cost is not a straight line. Examples include a cost function for use of a telephone line where the terms are a fixed charge of $10,000 per year plus a $2 per minute charge for phone use.

D) None of the above are correct. B) A linear cost function is a cost function where, within the relevant range, the graph of total cost versus the level of a single activity related to that cost is a straight line. An example of a liner cost function is a cost function for use of a telephone line where the terms are a fixed charge of $10,000 per year plus a $2 per minute charge for phone use. A nonlinear cost function is a cost function where, within the relevant range, the graph of total cost versus the level of a single activity related to that cost is not a straight line.

Example include economies of scale in advertising where an agency can double the number of advertisements for less than twice the costs, step-cost functions, and learning-curve based costs. Viaggio Intorno Alla Mia Camera Ebook Download. 'High correlation between two variables means that one is the cause and the other is the effect.' Do you agree? High correlation always means the variables have a cause and effect relationship. High correlation means there is no cause and effect relationship between variables. C) No you must also consider economic plausibility before determining there is a cause and effect relationship.

Cost Allocation and Activity-Based Costing Systems. Bt Wifi Hotspots Tenerife Air. And cost drivers. Chapter 5 Cost Allocation and Activity-Based Costing Systems 181. A cost object may appear related to different activities, but in determining cost drivers, a business must choose those that correlate mainly with the cost object, best facilitate management control and are the easiest for cost measurement.