In describing the cost formula equation, Y = a + bX, which of the following is correct:Select one or more:a. (a) means variable cost per unitb. (X) means total variable costV c. (a) means fixed costd. (y) means total fixed costs

The cost volume formula is denoted by - Y= a + bx where- “Y” is total cost “a” is the total fixed…

Answered: In describing the cost formula…

Business

Accounting

In describing the cost formula equation, Y = a + bX, which of the following is correct:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 17MC: In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs...

See similar textbooks

Related questions

Q: Market value ratios Earnings per share 443,547 686,487 5,213,884 net income 5,214,315 number of…

A: Market value ratios help in evaluation of economic position of companies which are publicly traded…

Q: In the mixed cost function Y A+ BX, total variable costs is represented by: O a. Y Ob. A BX C. BX O…

A: In accounting, the term mixed costs refers to costs and expenses that consist of two components: A…

Q: The intercept (straight line) on a graph of the linear cost function represents ....... cost

A: The cost function depicts the costs that will be incurred at various levels of activity Cost…

Q: Set out and explain the function of the p/e ratio

A: P/E ratio is a vital valuation ratio used in relative valuation methods. The function of pe ratio…

Q: In the mixed cost function Y = A + BX, total variable costs is represented by: a. A + BX b. A c. Y…

A: In the mixed cost function Y = A + BX, Y = Total Cost A = Fixed Cost B = Variable Cost per unit X =…

Q: Define each of the following terms:d. Flotation cost, F

A: Primary market is the place where company sells or offers new equity shares to the investors. New…

Q: Justine Co. produced 5,500 outdoor chairs for Job Order No. 616. Total material cost was P 51,700,…

A: Total direct labor costs = No. of units x no. of hours per unit x rate per hour = 5500 x 2.2 x P8.…

Q: Define variable cost and fixed cost. Give an example of each?

A: Variable Cost: Variable cost refers the cost which varies due to the change in the level of…

Q: he total mixed cost function

A: Mixed cost is a cost that contains both fixed and variable cost.Mixed cost algebric formula is as…

Q: Q- 8: opportunity cost, and sunk cost. Define the following terms: differential cost,

Q: What is the difference between a linear and a nonlinear cost function? Give an example of each type…

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

Q: Define the following terms, and explain the relationship between them: (a) cost estimation, (b) cost…

A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: In the cost behavior equation, b*X denotes the variable cost per unit. Select one: O True O False

A: Cost behavior serves as an indicator of how a cost will vary overall when an activity is changed.…

Q: Explain a linear cost function.

A: A function where the cost depends linearly upon the number of units produced is called a linear cost…

Q: Consider the following statements: (1) Total costs will equal the sum of fixed and variable costs.…

A: (1) Total costs will equal the sum of fixed and variable costs. This statement is true because fixed…

Q: Financial data for two (2) months are shown below March P3,200 a. Sales Cost A Cost B Cost C Cost D…

A: Fixed cost : fixed cost do not change with output or production. It always remain same. Variable…

Q: what would be the difference in gross margin between fifo and lifo cost flow assumptions

A: The difference in gross margin between FIFO (First-In, First-Out) and LIFO (Last-In, First-Out) cost…

Q: Describe three alternative linear cost functions.

A: Cost Function: Cost function represents the basic change comes in the total cost due to the change…

Q: Explain how the high-low method determines:a. The variable portion of a semivariable cost.b. The…

A: This method is used to segregate variable cost and fixed cost. In this method, highest level of…

Q: Define each of the following terms:f. Residual value

A: Introduction: Residual value is one of the elements of leasing computation or process. It defines…

Q: Complete the sentence: In a modified B/C (Benefit/Cost) Ratio... Select one: o a.disbenefits are put…

A: Answer: The correct option is option (c). The M&O costs are put in the numerator.

Q: Name four approaches to estimating a cost function.

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

Q: Define a nonlinear cost function.

A: Cost Function: Cost function represents the basic change that comes in the total cost due to the…

Q: Define separable cost.

Q: Using graphs, show how a semivariable (or mixed) cost behavior pattern can be used to approximate…

Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

In describing the cost formula equation, Y = a + bX, which of the following is correct:
Select one or more:
a. (a) means variable cost per unit
b. (X) means total variable cost
V c. (a) means fixed cost
d. (y) means total fixed costs

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

In the cost behavior equation, b*X denotes the variable cost per unit. Select one: O True O False
In the mixed cost function Y A+ BX, total variable costs is represented by: O a. Y O b.A+ BX OG. BX O d. A
In the mixed cost function Y = A + BX, total variable costs is represented by: a. A + BX b. A c. Y d. BX
In describing the cost formula equation, Y = a + bX, which of the following is correct?a. “Y” is the independent variableb. “a” is the variable cost per unitc. “a” and “b” are valid for all levels of activityd. in the high-low method, “b” equals the change in cost divided by the change in activity.
Complete the sentence: In a modified B/C (Benefit/Cost) Ratio... Select one: o a.disbenefits are put in the denominator. o b.M&O costs are put in the denominator. .M&O costs are put in the numerator. o d.benefits are subtracted from the costs.
The “fixed cost per unit function” may also be described as: a.an asymptote b.the total cost line c.the total variable cost line d.the total fixed cost line
Which of the following best describes a variable cost? A cost that: a. Represents a fixed proportion of total costs b. Has a direct relationship with outputc. Is sometimes also known as an indirect cos d. Falls on average, as output increases.
In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple Choice O O O "Y" is the independent variable. "a" is the variable cost per unit. "a" and "b" are valid for all levels of activity. in the high-low method, "b" equals the change in cost divided by the change in activity.
Total cost is a combination of fixed and variable costs. The algebraic equation, where T = totalcosts, v = variable costs, x = units produced, and f = fixed costs, for total cost is
simple cost analysis method to identify fixed costs and variable costs in a linear cost function is ........ method
An input whose cost is determined by the quantity of input consumed is a A. Fixed cost B. Variable cost C. Step cost D. Variable cost with fixed component
2. The following total cost graphs indicate which type of cost behavior? A. VARIABLE COST B. FIXED COST C. MIXED COST D. STEP COST