In the cost equation TC = F + VX,V is best described as the:
A) costs that do not vary with changes in the activity level.
B) intercept of the cost equation.
C) slope of the cost equation.
D) activity level used to estimate the dependent variable.

Question

Quizplus · Accepted Answer

V represents the variable cost per unit, which is the slope of the cost equation, indicating how total cost changes with changes in activity level.

In the Cost Equation TC = F + VX,V Is