Q482
In linear cost function, which is y = a + bx, y is classified as
A.
predicted fixed cost
B.
predicted variable cost
C.
predicted cost
AnswerD.
predicted price
Answer: Option C
Solution
Answer: Option C
Solution:
In linear cost function, which is y = a + bx, y is classified as predicted cost. It is the estimation of future cost levels based on historical cost behaviour characteristics, using such statistical techniques as linear regression.