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Commerce · Q437

Costing

Graduate and Post Graduate · Commerce · question 437

Q437

An amount by which total cost changes with respect to change in level of activity is classified as

A.
activity coefficient
B.
cost coefficient
C.
change coefficient
D.
slope coefficient
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
An amount by which total cost changes with respect to change in level of activity is classified as slope coefficient. The slope coefficient usually refers to the coefficient of any independent variable, x, in a regression equation.