Asked by Johana Madrid on Apr 28, 2024
Verified
Curvilinear costs increase as volume of activity increases,but at a nonconstant rate.
Curvilinear Costs
Costs that change with the level of output but at a non-constant rate, displaying a curved relationship between cost and output.
Nonconstant Rate
Refers to a rate that changes over time, as opposed to a constant or fixed rate which remains the same.
- Differentiate among fixed, variable, and mixed costs in terms of their relationship to production volume.
Verified Answer
YV
Ygnaxio VergaraApr 29, 2024
Final Answer :
True
Explanation :
Curvilinear costs are also known as nonlinear costs, and their increase is not constant as the volume of activity increases. They may increase at an increasing or decreasing rate depending on various factors.
Learning Objectives
- Differentiate among fixed, variable, and mixed costs in terms of their relationship to production volume.
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