Which of the Following Assumptions Are Typically Made When Estimating

Multiple Choice

Which of the following assumptions are typically made when estimating costs?

A) Costs are nonlinear and costs estimated for a specific level of activity are within the relevant range.
B) Costs are linear and costs estimated for a specific level of activity are within the relevant range.
C) Costs are nonlinear and total costs never exceed fixed costs.
D) Costs are linear and total costs never exceed variable costs.
E) None of the answer choices is correct.