A steeply sloped regression line indicates:
A)a strong relationship between the cost driver and costs
B)a greater proportion of fixed costs than variable costs
C)an economically plausible relationship exists
D)management should cut costs

Question

Quizplus · Accepted Answer

A steeply sloped regression line indicates a strong relationship between the cost driver and costs, meaning that as the cost driver increases, the costs increase at a faster rate. This suggests that changes in the cost driver have a significant impact on the costs and that there is a strong correlation between the two variables.

A Steeply Sloped Regression Line Indicates