A Cost Accountant Is Developing a Regression Model to Predict

question 68

Multiple Choice

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

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

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Definitions:

Credit Balance

The amount residing in a financial account that signifies the sum that a financial institution owes to the customer.

Manufacturer

A business entity or individual that makes finished products from raw materials through various processes.

Service Provider

A company or an individual that offers services to others in exchange for payment, typically specializing in a specific area of work.

Perpetual System

An inventory management system that tracks the addition and subtraction of inventory with each sale and purchase in real time, providing a high level of detail and accuracy.