linear cost function

linear cost function
Cost behaviour that, when plotted on a graph against activity levels, results in a straight line. For example, total fixed cost levels and variable costs per unit of activity will both result in a straight line horizontal to the x-axis when activity, production, or sales is plotted on the x-axis. Total variable costs will also result in a straight line and is thus a linear cost function.

Accounting dictionary. 2014.

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