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In describing the cost formula equation Y = a + bX, which of the following statements is correct? A) The X term is the depend
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Answer #1

In describing the cost formula equation,

Y = a + bX,

'Y' is the total cost

'a' is the fixed cost component

'b' is the variable cost per unit

'X' is the number of units.

Thus, Correct option is (B)

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