Trucks owned by a transportation company

Within the relevant range of activity, the behavior of total costs is assumed to be

a) curvilinear and upward sloping. b) linear and upward sloping. c) linear to a point and then level off. d) linear and downward sloping.

The major problem with the sales–productivity ratio method of assigning space is that _____

a. storability may not be considered b. too much space may be assigned for merchandise space c. too little space may be assigned for merchandise space d. an inadequate selection of merchandise may be stocked