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Commerce · Q458

Costing

Graduate and Post Graduate · Commerce · question 458

Q458

In estimation of cost functions, variations in a single activity level represents the

A.
related total costs
Answer
B.
related fixed cost
C.
related variable cost
D.
related per unit cost

Answer: Option A

Solution

Answer: Option A
Solution:
In estimation of cost functions, variations in a single activity level represents the related total costs. Total cost refers to the aggregation of all types of costs related to a cost object, which means fixed costs, variable costs, and mixed costs.