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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In describing the cost formula equation Y = a + bX, which of the following statements...
In describing the cost equation, Y = a + bX, the "bX" is: A) the independent variable level of activity. B) the total mixed cost. C) the total variable cost. D) the variable cost per unit of activity.
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