Curvilinear costs always increase:
A) On a per unit basis when volume of activity goes down.
B) With decreases in volume.
C) When volume increases, but at a nonconstant rate.
D) When management performs break-even analysis.
E) In constant proportion to changes in production levels.

Question

Quizplus · Accepted Answer

Curvilinear costs do not increase in a linear fashion with changes in production levels. Instead, they may initially increase at a slow rate, then increase at an increasing rate before eventually plateauing. Therefore, choice C is the correct answer as it states that curvilinear costs increase when volume increases, but at a nonconstant rate.

Curvilinear Costs Always Increase