Which of the Following Describes the Intercept in a Linear

question 208

Multiple Choice

Which of the following describes the intercept in a linear cost function?

• A)the component of fixed costs that, within the relevant range, does not vary with changes in the level of the cost driver
• B)the component of fixed costs that, within the relevant range, does vary with changes in the level of the cost driver
• C)the component of variable costs that, within the relevant range, does not vary with changes in the level of the cost driver
• D)the component of variable costs that, within the relevant range, does vary with changes in the level of the cost driver
• E)the sum of the components of both fixed and variable costs that, within the relevant range, do not vary with changes in the level of the cost driver

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