A cost equation is an mathematical formula which company uses to estimate the cost and expenses which is associated with the production or sales processes.
y represents the total cost which can be calculated by adding total variable cost and Fixed cost. X represent the quantity and variable coefficient is the variable cost. to calculate the total variable cost the quantity is multiplied with the variable cost unit as follow
Since in the given situation there is a depreciation method change i.e. from the straight-line method to double-declining method so there would be no impact restrospectively.
Hence, there would be no cumulative impact as it creates the impact prospectively
The fact that limited amounts of goods and services are available to meet unlimited wants is called scarcity. ... Scarcity always exists. There simply are not enough goods and services to supply all of society's needs and wants.