A Cost Accountant Is Developing a Regression Model to Predict

question 75

Multiple Choice

A cost accountant is developing a regression model to predict the total cost of producing a batch of car seats as a function of batch size (the number of seats produced in one lot or batch) .The dependent variable is ___.

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

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Definitions:

Marginal Revenue

The gain in revenue resulting from the sale of one extra unit of a good or service.

Marginal Cost

The price of making an additional unit of a product or service.

Perfect Competition

A market setup where numerous buyers and sellers interact, offering identical products, with no barriers to entry or exit, and complete transparency of information, resulting in suppliers having no control over prices.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market. This seller faces no competition, as he is the sole seller of goods with no close substitute.