(Appendix 5A) Lacourse Inc

question 74

Multiple Choice

(Appendix 5A) Lacourse Inc.'s inspection costs are listed below:
Management believes that inspection cost is a mixed cost that depends on units produced.
-Using the least-squares regression method,the estimate of the variable component of inspection cost per unit produced is closest to:

• A) $22.80
• B) $8.82
• C) $8.27
• D) $8.78

---

Definitions:

Total Opportunity Cost

The sum of all the benefits that could have been received from the next best alternative option that was not chosen.

JIT Point

A strategy where materials, goods, and even labor are delivered or acquired just in time to be used, reducing storage and inventory costs.