In the Formula, Total Cost = Fixed Cost + (Variable

question 41

Multiple Choice

In the formula, Total cost = Fixed cost + (Variable rate x Output) , variable cost refers to the

• A) slope parameter or b
• B) intercept parameter or a
• C) dependent variable
• D) independent variable

---

Definitions:

Income Ratio

A financial metric that compares different streams of income, often used to assess the profitability or efficiency of a business operation.

Capital Balances

The amounts invested by owners or shareholders in the company, represented in the equity section of the balance sheet.

Distribution of Cash

The process of allocating cash among creditors, investors, and operational expenses within a company.

Income and Loss Sharing

A method of distributing profits and losses among business partners or investors according to a pre-agreed ratio.