In the Mixed?cost Function, Y = $72,000 + $7

question 7

Multiple Choice

In the mixed?cost function, Y = $72,000 + $7.70X, the $72,000 stands for _____.

• A)total fixed cost
• B)total cost
• C)variable cost per unit of cost driver
• D)number of units of the cost driver

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Definitions:

Two Years

A time period equal to 24 months or 730 days, often cited in various contexts such as investment holding periods for tax purposes.

Personal-use Asset

An asset primarily used for personal enjoyment or living purposes, not for business or investment aims.

Like-kind Exchange

A tax-deferred transaction allowing for the disposal of an asset and the acquisition of another similar asset without generating a tax liability from the sale of the first asset.

Installment Method

A tax procedure that allows the taxpayer to spread the income and taxes owed on the sale of property over the period in which the payments are received.