Vidyalelo
Commerce · Q487

Costing

Graduate and Post Graduate · Commerce · question 487

Q487

Examples of nonlinear cost functions are

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

Answer: Option B

Solution

Answer: Option B
Solution:
Examples of nonlinear cost functions are step cost functions. The NCF represents a nonlinear multivariate functional of state variables.