The intercept of the flexible budget-line is total
A)sales.
B)variable costs.
C)fixed costs.
D)contribution margin.
E)assets.

Name: The intercept of the flexible budget-line is total A)sales. B)variable costs. C)fixed costs. D)contribution margin. E)assets.
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Question

Quizplus · Accepted Answer

The intercept of the flexible budget line represents the fixed costs. This is because at zero level of activity, all the costs incurred are fixed costs that do not vary with the level of output.

The Intercept of the Flexible Budget-Line Is Total