A nonlinear cost function
A)has two constants and a single slope.
B)does not effectively describe the behaviour of outside the relevant range.
C)never describes the behaviour of costs in relation to the cost driver.
D)always describes the behaviour of costs in relation to the cost drivers.
E)means the relevant range cannot be determined for that cost.

Question

Quizplus · Accepted Answer

Nonlinear cost functions do not have a constant slope and their behavior cannot be accurately described outside the relevant range of activity.

A Nonlinear Cost Function