A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a linear function of batch size (the number of boards produced in one lot or batch).The slope of the accountant's model is ______.
A)batch size
B)unit variable cost
C)fixed cost
D)total cost
E)total variable cost

Question

Quizplus · Accepted Answer

The slope in a regression model predicting total cost as a function of batch size represents the change in total cost for a one-unit change in batch size, which corresponds to the unit variable cost. Fixed costs do not change with production volume, and total cost, batch size, and total variable cost are not measures of change per unit of batch size.

A Cost Accountant Is Developing a Regression Model to Predict