When a mixed cost is graphed the slope of the line equals
A) the variable cost per unit of the activity driver.
B) the total variable cost.
C) the sales price per unit.
D) the total fixed cost.

Question

Quizplus · Accepted Answer

The slope of the line on a mixed cost graph represents the variable cost per unit of the activity driver, which is the measure of the cost driver (such as hours worked or units produced) that explains the variation in total cost. The fixed cost is represented by the y-intercept of the line.

When a Mixed Cost Is Graphed the Slope of the Line