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 increase in number of units produced during the period
D) a strong relationship between fixed cost and variable cost

Question

Quizplus · Accepted Answer

A steeply sloped regression line indicates a strong relationship between the cost driver and costs. This means that as the cost driver increases, there is a more significant impact on the total cost, suggesting a strong correlation between the two variables.

A Steeply Sloped Regression Line Indicates ________