in describing the cost equation, ( y = a + bx ), what is a?\na) the independent variable level of…

in describing the cost equation, ( y = a + bx ), what is a?\na) the independent variable level of activity\nb) the total fixed cost\nc) the variable cost per unit of activity\nd) the dependent variable cost

in describing the cost equation, ( y = a + bx ), what is a?\na) the independent variable level of activity\nb) the total fixed cost\nc) the variable cost per unit of activity\nd) the dependent variable cost

Answer

Brief Explanations:

In the cost equation (Y = a + bX), (Y) represents total cost (dependent variable). (X) is the level of activity (independent variable). (b) is the variable cost per unit of activity. When (X = 0) (no activity), (Y=a). Fixed costs are costs that do not change with the level of activity. So, (a) is the total fixed cost.

Answer:

B. The total fixed cost