In Describing the Cost Formula Equation Y = a

question 25

Multiple Choice

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

• A) The X term is the dependent variable.
• B) The a term is the fixed component.
• C) In the high-low method, the b term equals change in activity divided by change in costs.
• D) As the X term increases, the Y term decreases.

---

Definitions:

Right of Redemption

A debtor's legal right to reclaim property that has been foreclosed upon or repossessed by paying off debt, usually within a specific period.

Continuation Statement

A statement that, if filed within six months prior to the expiration date of the original financing statement, continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued in the same manner indefinitely.

Perfected

In legal terms, refers to a secured interest in a piece of property that has been properly filed or registered, ensuring priority over claims from other creditors.

Financing Statement

A document filed by a secured creditor to give public notice of their security interest in a debtor's personal property.