(Appendix 2A)Cespedes Inc

question 14

Multiple Choice

(Appendix 2A) Cespedes Inc.'s inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on units produced. Using the least-squares regression method, the estimate of the fixed component of inspection cost per month is closest to:

• A)$6, 983
• B)$10, 342
• C)$10, 527
• D)$6, 972

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Definitions:

Cuticle

A protective, often waxy or tough outer layer of many organisms, such as plants and insects, serving as a barrier against environmental damage.

Retention

The ability to hold, store, or retain an object, substance, or memory within a system or organism.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is essential for most forms of life and is known chemically as H2O.

Flagellated Sperm

Sperm cells equipped with a flagellum, allowing for motility in fluid environments, commonly found in many plants and some animals.