The slope coefficient of cost function is zero because it intersects the __________?
Correct answer: B. y-axis at constant
- A. x-axis at one
- B. y-axis at constant
- C. x-axis at constant
- D. y-axis at one
Explanation
In the cost equation Y = a + bX, a zero slope means cost does not change with activity and remains at the constant intercept a. The line therefore meets the y-axis at a constant value.
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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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