Narrative 5-1
The following question(s)refer to the this equation analyzing the relationship of total cost to changes in machine hours.The following relationship was determined:
TC = $2,200 + $3X
Refer to Narrative 5-1.The TC in the above equation is an estimate of which of the following?
A)total variable costs.
B)total costs.
C)total fixed costs.
D)total machine hours.

Question

Quizplus · Accepted Answer

In the given equation TC = $2,200 + $3X, TC represents total cost, which includes both fixed and variable costs. Therefore, the estimate given by this equation is for total costs, and not just fixed or variable costs.

Narrative 5-1 The Following Question(s)refer to the This Equation Analyzing the Relationship