The Following Cost Formula Was Developed Using Monthly Data for a Retail

question 195

Multiple Choice

The following cost formula was developed using monthly data for a retail clothing store. Total cost = $50,000 + ($250 × number of customers)
The number $50,000:

• A) is the unknown variable
• B) is the dependent variable.
• C) is the intercept.
• D) is the slope rate.

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to produce goods or services.

Business Transactions

Economic events that are recorded in the financial statements of an entity because they affect the financial position of the company, involving the transfer of value between two or more parties.

Journal

A chronological record of all financial transactions, used to transfer information to a company's ledger.

Ledger

A book or collection of financial accounts of a particular type, often referred to as the final book of entry where transactions are summarized.