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Commerce · Q368

Costing

Graduate and Post Graduate · Commerce · question 368

Q368

Cost function, in which cost does not change with any change in level of activity is a part of

A.
step price functions
B.
step object functions
C.
step constant functions
D.
step cost functions
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Cost function, in which cost does not change with any change in level of activity is a part of step cost functions. A step cost is a cost that does not change steadily with changes in activity volume, but rather at discrete points.