When a Mixed Cost Is Graphed, What Does the Y-Intercept

question 37

Multiple Choice

When a mixed cost is graphed, what does the Y-intercept correspond to?

• A) the fixed cost
• B) the variable rate
• C) the number of units sold
• D) total fixed cost + total variable cost

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Definitions:

Straight-Line Depreciation

A method of allocating an asset's cost evenly over its useful life, resulting in a consistent depreciation expense each year.

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to production or acquisition of goods.

Rate of Return

The percentage gain or loss on an investment over a specified time period.

Operating Cash Flow

Cash generated from a company's regular operational activities, reflecting its ability to generate cash from its core business operations.