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GrogVix [38]
3 years ago
9

Which of the following statements is true of a linear cost​ function? A. It presents total cost as an intercept. B. It presents

variable cost as a slope coefficient. C. It presents variable cost as an intercept. D. It presents total cost as slope coefficient.
Business
1 answer:
mixer [17]3 years ago
8 0

Answer:

Option B It presents variable cost as a slope coefficient

Explanation:

The reason is that the total cost function is:

Y = a + bx

The total cost in this case is Y, a is fixed cost as an intercept, b is variable cost represented as an slope and coefficient and x is level of activity which is independent of Y.

So the right answer is option B.

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Answer:

$92,400

Explanation:

Coolwear incorporation has a balance in its prepaid insurance account of $48,400

In 2018, $86,000 was paid for insurance

At the end of 2018, the balance was $42,000 after adjusting entries were recorded

Therefore the insurance expense for 2018 can be calculated as follows

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