A Cost Accountant Is Developing a Regression Model to Predict

question 53

Multiple Choice

A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a linear function of batch size (the number of boards produced in one lot or batch) .The slope of the accountant's model is ______.

• A)batch size
• B)unit variable cost
• C)fixed cost
• D)total cost
• E)total variable cost

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Matching Principle

An accounting principle that dictates that expenses should be matched with the revenues they helped to generate in the same period.

Revenues

Revenues refer to the total amount of money earned by a company from its business activities, such as the sale of goods or services, before any expenses are subtracted.

Expenses

Outflows or other using up of assets or incurring of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.