Select the best description for the following:
-Total utility cost = $12,500 + ($10.00 × no.of machine hours)
A)Fixed cost
B)Variable cost
C)Dependent variable
D)Independent variable
E)Variable rate
F)Cost equation

Question

Quizplus · Accepted Answer

This is a cost equation, which represents the total utility cost as a function of a fixed cost ($12,500) and a variable cost component ($10.00 per machine hour).

Select the Best Description for the Following