When managers graph a linear cost function with one cost driver, the intercept represents the ________...
When managers graph a linear cost function with one cost driver, the intercept represents the ________ cost and the slope represents the ________ cost.
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a. fixed; variable |
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b. variable; fixed |
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c. fixed; mixed |
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d. variable; mixed |
Homework Answers
| When managers graph a linear cost function with one cost driver, the intercept represents the fixed cost and the slope represents the variable cost. |
| The intercept represents a constant that is independent. The slope is the coefficient of the independent variable and is dependent. |
| The constant represents the fixed cost and the slope which changes with output is variable cost. |
| Option A fixed; variable is correct |
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