In the Equation: Y = Vx + F,what Term Represents

question 160

Multiple Choice

In the equation: y = vx + f,what term represents the variable cost per unit of activity? (Assume x represents the volume of activity.)

• A)f
• B)v
• C)y
• D)vx

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Definitions:

Responsibility Accounting

An accounting system focused on controlling costs and evaluating performance by assigning responsibility to individual managers or departments.

Benchmarks

Benchmarks are standard points of reference against which performance, quality, or value can be measured, often used for comparison in business, finance, and industry.

Top-Down Budgeting

A budgeting approach where the budget is created by the top management and then distributed down through the ranks of the organization.

Sales Forecasts

Predictions of the future sales performance of a company, typically based on historical data, market trends, and economic conditions.