In Describing the Cost Formula Equation Y = a

question 102

Multiple Choice

In describing the cost formula equation Y = a + bX,which of the following statements is correct:

• A) "X" is the dependent variable.
• B) "a" is the fixed component.
• C) "b" is the fixed component.
• D) as "X" increases "Y" decreases.

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Definitions:

Total Market Value

The aggregate valuation of a company, measured by multiplying its current share price by its total outstanding shares.

Cost Of Goods Sold

Costs directly linked to manufacturing goods that a company sells, comprising expenditures on materials and labor.

Inventory Turnover

A proportion indicating the frequency with which a business has sold its inventory and replenished it within a specific timeframe.

Current Liabilities

Financial obligations of a business that are due and payable within one year, including accounts payable, short-term debt, and other short-term obligations.