When Identifying Fixed and Variable Costs, Which One of the Following

Multiple Choice

When identifying fixed and variable costs, which one of the following is a typical assumption concerning cost behavior?

A) General and administrative costs are assumed to be variable costs.
B) Cost behavior is assumed to be realistic for all levels of activity from zero to maximum capacity.
C) Total costs are assumed to be linear when plotted on a graph.
D) The relevant time period is assumed to be five years.