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When marginal costs change depending on the level of activity, curvilinear cost behavior pattern exists.
What are curvilinear costs?
An expense that rises at a variable rate as output volume rises is referred to as a curvilinear cost, also known as a nonlinear cost. To put it another way, this is an erratic cost that rises at varying rates as overall output rises.
What characteristics of cost behavior exist?
Cost behavior describes how changes in business activities affect expenses. When creating the annual budget, a business management should be informed of cost trends so they can foresee whether any costs will rise or fall.
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