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:

Direct Labor

The labor cost directly associated with the production of goods, including wages of workers who are directly involved in creating the product.

Cash Account

An account that records cash transactions both received and expended, reflecting the cash position of a business at any given time.

Raw Material

Raw material refers to the basic, unprocessed inputs used in the production of goods and services; they are the essential components required in the manufacturing process.

Standard Costs

Predetermined costs for products or services, used as benchmarks to measure actual production costs.