A Cost Accountant Is Developing a Regression Model to Predict

question 85

Multiple Choice

A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a linear function of batch size (the number of boards produced in one lot or batch) .The intercept of this model is the ______.

• A)batch size
• B)unit variable cost
• C)fixed cost
• D)total cost
• E)total variable cost

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Definitions:

Demand Anticipation

The process of forecasting customer demand to manage resources and inventory effectively.

Escalator Clauses

Contractual provisions allowing for an automatic increase in prices or wages under certain conditions, often tied to inflation rates or cost increases.

Scrap Disposal

The process of getting rid of waste materials, remnants, or byproducts from manufacturing or consumption.

Primary Metals

The unalloyed, pure forms of metals extracted directly from the earth through mining processes, which serve as the basic raw materials for metal production and manufacturing.