Which of the Following Represents the Total Cost Equation

question 171

Multiple Choice

Which of the following represents the total cost equation?

• A)y = vx - f
• B)y = fx + v
• C)y = f
• D)none of the above

---

Definitions:

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs more accurately.

Variances

The difference between planned or expected financial outcomes and the actual results, often analyzed in budgeting and cost management.

Performance Reports

Documents that compare actual work performance against planned or expected outcomes.

Variable Cost

A cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit.