In the Mixed- Cost Function, Y = $59,000 + $7

question 92

Multiple Choice

In the mixed- cost function, Y = $59,000 + $7.70X, the Y signifies:

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

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Definitions:

Component Costs Of Capital

The individual costs of capital that a company incurs from each of its sources of funding, such as equity, debt, and preferred stock.

Effective Cost Of Capital

The actual cost of a company's funding after adjusting for various factors, including tax benefits, associated with different sources of capital.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, providing a measure that reflects the significance of each value.

Specific Costs

Costs that can be directly attributed to a particular project, department, or activity.