Descoteaux Inc

question 2

Multiple Choice

Descoteaux 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)$1,979
• B)$6,033
• C)$5,624
• D)$2,021

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