Which of the following is not an assumption when estimating a cost function over the relevant range of activity?
A) Mixed costs will change in total
B) Mixed costs will change per unit
C) Variable costs will be constant in total
D) Fixed costs will be constant in total.

Question

Quizplus · Accepted Answer

The assumption that variable costs will be constant in total is incorrect. Variable costs will increase or decrease in total as activity levels change.

Which of the Following Is Not an Assumption When Estimating