When a mixed cost is graphed, what does the slope of the line represent?
A) the total cost per unit
B) the sales price per unit
C) the fixed cost per unit of output
D) the variable cost per unit of the activity driver

Question

Quizplus · Accepted Answer

The slope of the line represents the variable cost per unit of the activity driver. This is because mixed costs are made up of both fixed and variable components. The variable component changes based on the level of activity, which is represented on the x-axis of the graph. Therefore, the slope of the line represents the change in cost that occurs as the level of activity changes.

When a Mixed Cost Is Graphed, What Does the Slope