The Following Cost Formula Was Developed Using Monthly Data for Montreal

question 97

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 $75,620 represent?

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

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Definitions:

Expected Sales

Sales that a company realistically anticipates to achieve in a specific period, based on market research, historical data, and current market conditions.

Ending Inventory

The value or quantity of goods available for sale at the end of an accounting period, after accounting for sales and purchases.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, before any purchases or production.

Cash Budget

A detailed plan showing how cash resources will be acquired and used over a specific time period.