Refer to Drumheller Company. Which element is the intercept?
A) output
B) total cost
C) fixed cost
D) variable rate

Name: Refer to Drumheller Company. Which element is the intercept? A) output B) total cost C) fixed cost D) variable rate
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Question

Quizplus · Accepted Answer

The intercept in a cost-volume-profit analysis represents the fixed cost, which is the cost that does not vary with changes in production or sales volume. Therefore, the intercept in Drumheller Company's cost-volume-profit analysis would be the fixed cost.