Question: What two assumptions are frequently made when estimating a linear cost function? Variations in the level of a single activity ( the cost driver )

What two assumptions are frequently made when estimating a linear cost function?
Variations in the level of a single activity (the cost driver) explain the variations in
the related total costs; Cost behaviour is approximated by a linear function
within the relevant range.
Variations in the level of a group of activities explain the variations in the related
fixed costs; Cost behaviour is approximated by a distribution function within the
relevant range.
Both of the above.
Neither of the above.
What two assumptions are frequently made when

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