Essay
Resource Consulting is studying the costs of several clients, and has found graphs of cost behaviour patterns would appear as follows:
1. A straight line that gradually slopes upward to the right
2. A curvilinear line that gradually slopes upward to the right
3. A straight line that is parallel to the graph's horizontal axis
4. A straight line that gradually slopes downward to the right
5. A curvilinear line that gradually slopes downward to the right
6. A straight line that gradually slopes upward to the right and then, at a specific point, flattens out to run parallel to the horizontal axis
7. A series of straight lines that appear to resemble a set of steps
8. A straight line that runs parallel to the graph's horizontal axis and then, at a specific point, drops to a lower level
Unless told otherwise, assume that the horizontal axis represents total activity and the vertical axis represents total cost.
Required:
For items A-F below, indicate the number of the graph that best represents the cost behaviour pattern described. Note: Graphs can be used more than once, and not all graphs need be used.
Correct Answer:

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A. 7 B. 1 ...View Answer
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