Curvilinear costs always increase:A) With decreases in volume.B) In constant proportion to changes in production levels.C) When management performs break-even analysis.D) When volume increases, but not at a constant rate.E) On a per unit basis when volume of activity goes down.

Question

Curvilinear costs always increase:A)  With decreases in volume.B)  In constant proportion to changes in production levels.C)  When management performs break-even analysis.D)  When volume increases, but not at a constant rate.E)  On a per unit basis when volume of activity goes down.

Breland Steward · Accepted Answer

Final Answer : D, Explanation :  Curvilinear costs increase as volume increases, but not at a constant rate. They may start off increasing slowly and then accelerate as volume increases. Therefore, as volume decreases, curvilinear costs may not decrease at the same rate.

Curvilinear costs always increase:

A) With decreases in volume.
B) In constant proportion to changes in production levels.
C) When management performs break-even analysis.
D) When volume increases, but not at a constant rate.
E) On a per unit basis when volume of activity goes down.

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