If there is no "a" value in a linear cost equation,this is an indication that the cost is
A)fixed.
B)mixed.
C)variable.
D)either fixed or mixeD.

Question

Quizplus · Accepted Answer

If there is no "a" value in a linear cost equation, it means that the equation only includes the variable cost component (represented by the "b" value). This indicates that the cost is solely dependent on the level of output or activity, making it a variable cost. Therefore, the best choice is C) variable. The cost cannot be fixed or mixed, as there is no fixed cost component (represented by the "a" value) present in the equation.

If There Is No "A" Value in a Linear Cost