Asked by Emalie Saalsaa on Jun 23, 2024
Verified
A cost that changes as volume changes,but at a nonconstant rate,is called a:
A) Variable cost.
B) Curvilinear cost.
C) Step-wise variable cost.
D) Fixed cost.
E) Differential cost.
Curvilinear Cost
A cost structure where costs increase at a non-constant rate as volume increases, depicting a curve on a graph.
Variable Cost
Refers to expenses that vary in proportion to the volume of goods or services produced.
Nonconstant Rate
Refers to a rate or percentage that varies over time or across different situations, not fixed or uniform.
- Distinguish among the different types of costs including variable, fixed, step-wise, and curvilinear.
Verified Answer
KF
Kayla FitzpatrickJun 28, 2024
Final Answer :
B
Explanation :
A curvilinear cost is a cost that changes as volume changes but not at a constant rate. This means that the cost does not increase or decrease in a straight line as volume changes, but rather it follows a curved path. Variable costs change in direct proportion to volume, step-wise variable costs change only at specific intervals or "steps," fixed costs remain constant regardless of volume, and differential costs are the difference between two alternatives.
Learning Objectives
- Distinguish among the different types of costs including variable, fixed, step-wise, and curvilinear.