Drumheller Company's Total cost = Fixed cost + Variable Rate × Output
-Refer to the Figure.Which element is the intercept?
A)fixed cost
B)total cost
C)output
D)variable rate

Name: Drumheller Company's Total cost = Fixed cost + Variable Rate × Output -Refer to the Figure.Which element is the intercept? A)fixed cost B)total cost C)output D)variable rate
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Question

Quizplus · Accepted Answer

The intercept is where the line of the equation crosses the y-axis (when output is zero), which represents the fixed cost.

Drumheller Company's Total Cost = Fixed Cost + Variable Rate