In a linear cost function,the slope measures the ________.
A) total fixed cost
B) total variable cost
C) variable cost per unit of cost driver
D) fixed cost per unit of cost driver

Question

Quizplus · Accepted Answer

In a linear cost function, the slope corresponds to the rate of change between the cost driver (usually units of production) and the variable cost. Therefore, the correct answer is C, which refers to the variable cost per unit of cost driver. Options A and B are incorrect because fixed costs and total variable costs are not related to the slope. Option D is incorrect because fixed costs do not vary with changes in the cost driver, and therefore cannot be represented by a slope in a linear cost function.

In a Linear Cost Function,the Slope Measures the ________