Figure 3-1.Total cost = Fixed cost + (Variable Rate * Output)
-Refer to Figure 3-1. In the cost formula above which element would be the slope?
A) variable rate
B) output
C) fixed cost
D) total cost

Question

Quizplus · Accepted Answer

The slope in the cost formula represents the rate of change in cost with respect to the change in output. In this formula, the variable rate (F1F1F1S1) is the coefficient that determines the slope. As output (F1F1F10) increases, the cost increases by the variable rate. Therefore, the best choice for the slope in this formula would be A) variable rate.