In linear cost function, fixed cost is considered as
A. constant
B. variable
C. exponent
D. base
Answer: Option A
Solution(By Examveda Team)
In linear cost function, fixed cost is considered as constant. Fixed costs refer to costs that do not vary with production volume. They remain relatively constant regardless of the company's level of production or business activity.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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