In the linear cost function which is y=a + bx, the objective is to find the ___________?
Correct answer: A. values of a and b
- A. values of a and b
- B. values of x and y
- C. values of a and x
- D. values of b and y
Explanation
In y = a + bx, a is the fixed-cost intercept and b is the variable-cost slope. Cost estimation therefore focuses on finding the values of a and b.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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