In a mixed-cost linear function with one cost driver,the intercept is the ________ and the slope is the ________.
A) fixed cost; step cost
B) fixed cost; variable cost
C) variable cost; fixed cost
D) variable cost; step cost

Question

Quizplus · Accepted Answer

In a mixed-cost linear function, the intercept represents the fixed cost, which remains constant regardless of the level of the cost driver. On the other hand, the slope represents the variable cost per unit of the cost driver. Therefore, the correct option is B, where the intercept is the fixed cost, and the slope is the variable cost.

In a Mixed-Cost Linear Function with One Cost Driver,the Intercept