In the equation: y = vx + f, what term represents the fixed cost component?
A) f
B) v
C) y
D) vx

Name: In the equation: y = vx + f, what term represents the fixed cost component? A) f B) v C) y D) vx
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Question

Quizplus · Accepted Answer

The term "f" represents the fixed cost component because it does not change with the amount of output produced or the level of activity. It is a constant amount that a company incurs regardless of how much they produce or sell.

In the Equation: Y = Vx + F, What Term