Total Cost = Fixed Cost + (Variable Rate × Output).In the cost formula, the slope corresponds to the _____.
A) dependent rate
B) output rate
C) conversion rate
D) variable rate

Question

Quizplus · Accepted Answer

The variable rate corresponds to the slope in the cost formula. The slope represents the rate of change in cost per unit of output, which is determined by the variable cost per unit. The fixed cost constitutes a constant component of the total cost equation and does not change with respect to output. Therefore, the variable rate is the best choice for the answer.