Linear cost function

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Linear cost function is cost function in which the graph of total costs versus the level of a single activity related to that cost is a straight line within the relevant range.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Linear cost function. Cost function in which the graph of total costs versus the level of a single activity related to that cost is a straight line within the relevant range.

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