The Following Cost Formula Was Developed Using Monthly Data for Montreal

question 139

Multiple Choice

The following cost formula was developed using monthly data for Montreal Clothing Store.Total cost = $75,620 + ($242 × number of customers)
-Refer to the Figure.What does $242 represent?

• A)the independent variable
• B)the dependant variable
• C)the intercept
• D)the variable rate

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Definitions:

Substantial Decentralization

The process or policy of distributing or dispersing functions, powers, people, or things away from a central location or authority.

Horizontal Specialization

Division of labor where tasks are divided into specialized jobs or roles at the same level in an organizational hierarchy.

Adhocracy

An organizational structure characterized by flexibility, employee autonomy, and an emphasis on innovation and creativity.

Legal Authority

The power or right given to an individual or organization to perform certain actions based on legal or official rules.