Which of the Following Statements Is True of a Linear

question 18

Multiple Choice

Which of the following statements is true of a linear cost function?

• A) It presents variable cost as a slope coefficient.
• B) It presents total cost as an intercept.
• C) It presents variable cost as an intercept.
• D) It presents total cost as slope coefficient.

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Definitions:

Sales and Administrative Expenses

Costs associated with the general operation of a company and the sale of its products, excluding production costs.

Factory Overhead

Costs associated with running a factory that are not directly tied to a specific product, including utilities and salaries for management.

Product Costs

Product costs are the direct expenses associated with manufacturing a product, including direct labor, raw materials, and manufacturing overhead.

Prime Costs

The combination of direct material and direct labor expenses incurred in producing a product.