In the following equation for total cost, Y = a + bX, the slope of the total cost line is an approximation of which of the following?
A) Total Cost
B) Fixed Cost
C) Variable Cost
D) Volume

Question

Quizplus · Accepted Answer

The slope of the total cost line (b) represents the change in total cost for a unit change in the level of activity or volume, which is an approximation of the variable cost per unit. Fixed costs (a) are represented by the Y-intercept.

In the Following Equation for Total Cost, Y = a