The Linear Equation Y = a + BX Is Often

question 66

Multiple Choice

The linear equation Y = a + bX is often used to express cost formulas.Which of the following representations in this equation is correct?

• A) The b term represents variable cost per unit of activity.
• B) The a term represents variable cost in total.
• C) The X term represents total costs.
• D) The Y term represents total fixed costs.

---

Definitions:

Outputs

The final products, services, or results that come from processes or activities within systems or organizations.

Operations-Related Activities

Tasks and processes directly involved in the production and delivery of services or goods.

Hard Rock Café

A global chain of themed restaurants known for its collection of rock and roll memorabilia, dining services, and entertainment.

Ingredient Cost

The cost of raw materials used to produce a product or dish.