Accountants sometimes use a linear cost model for nonlinear costs because:
A) the cost of using more accurate models may exceed the benefit of greater accuracy
B) a nonlinear model is too difficult to develop
C) a nonlinear model is too difficult for managers to interpret
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Accountants may use a linear cost model for nonlinear costs because developing and interpreting nonlinear models can be complex and costly, and the benefits of greater accuracy may not justify these costs.

Accountants Sometimes Use a Linear Cost Model for Nonlinear Costs