A Cost Accountant Is Developing a Regression Model to Predict

question 53

Multiple Choice

A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a linear function of batch size (the number of boards produced in one lot or batch) .The slope of the accountant's model is ______.

• A)batch size
• B)unit variable cost
• C)fixed cost
• D)total cost
• E)total variable cost

---

Definitions:

New Businesses

Entities that have been recently established and are in the early stages of their operational and financial life cycle, facing unique challenges such as market entry and funding.

Credit Card Company

A financial institution that issues credit cards to consumers, offering a revolving line of credit that can be used to make purchases, transfer balances, and/or access cash advances.

Percentage Of Sale

A commission structure where payment is based on a percentage of the sales made.

Prestige Pricing

A pricing strategy where prices are set higher than average to present the image of exclusivity and high quality.