In a regression equation, variable costs per unit are represented by the:
A) Slope
B) Intercept
C) Error term
D) Adjusted R-square coefficient

Question

Quizplus · Accepted Answer

The slope in a regression equation represents the rate of change in the dependent variable for a one-unit change in the independent variable. In the context of costs, the slope would represent variable costs per unit, as it shows how costs change with changes in activity level (e.g., production volume).

In a Regression Equation, Variable Costs Per Unit Are Represented