In the mixed-cost function, Y = F + VX, the X stands for
A) total fixed cost.
B) total cost.
C) variable cost per unit of cost driver.
D) number of units of the cost driver.

Question

Quizplus · Accepted Answer

In the mixed-cost function, Y represents the total cost, F represents the fixed cost component, and V represents the variable cost per unit of the cost driver. Therefore, X must represent the number of units of the cost driver, which affects the total cost.

In the Mixed-Cost Function, Y = F + VX, the X