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A cost is $3,600 at 1,000 units, $7,000 at 2,000 units, and $9,200 at 3,000 units. This cost is a A. mixed cost B. STEP

A cost is $3,600 at 1,000 units, $7,000 at 2,000 units, and $9,200 at 3,000 units. This cost is a

A. mixed cost

B. STEP COST

C. VARIABLE COST

D. FIXED COST

2. Which of the following statements about the relevant range is true?

A. Cost functions outside the relevant range are usually linear

B. The relevant range is the normal length of time in a companys accounting period

C. Estimates outside the relevant range are useful

D. Cost functions within the relevant range are assumed to be linear

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