A Cost Accountant Is Developing a Regression Model to Predict

question 53

Multiple Choice

A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a linear function of batch size (the number of boards 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:

Vertical Mergers

Vertical mergers occur between companies in the same industry but at different stages of the production process, aiming to increase efficiencies and control over the supply chain.

Horizontal Mergers

The combination of two or more firms operating at the same level in an industry, aiming to increase market share.

Herfindahl Index

A measure of market concentration, calculated by summing the squares of the market shares of all competitors within an industry.