Name the two assumptions frequently made while estimating a cost function.

foass77W

foass77W

Answered question

2021-09-04

Name the two assumptions frequently made while estimating a cost function.

Answer & Explanation

Mitchel Aguirre

Mitchel Aguirre

Skilled2021-09-05Added 94 answers

The two assumptions are:
1) Variations in the level of a single activity the variations in the related total costs.
2) Cost behavior is approximated by a linear function within the relevant range.

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