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 intercept of this model is the ______.
A)batch size
B)unit variable cost
C)fixed cost
D)total cost
E)total variable cost

Question

Quizplus · Accepted Answer

The intercept in a linear regression model represents the value of the dependent variable when all independent variables are zero. In the context of cost prediction, the intercept would represent the fixed cost, which is the cost incurred regardless of the production volume.

A Cost Accountant Is Developing a Regression Model to Predict