Question

In the standard cost formula Y = a + bX, what does the "Y" represent?

A) total cost
B) total fixed cost
C) total variable cost
D) variable cost per unit

Answer 1

In the standard cost formula Y = a + bX, the "Y" represents total cost, which is the sum of fixed cost and variable cost per unit.

Step-by-step explanation:

In the standard cost formula Y = a + bX, the "Y" represents total cost.

The total cost is the sum of the fixed cost (represented by "a") and the variable cost per unit (represented by "bX").

For example, if the standard cost formula is Y = 100 + 5X, where X is the number of units produced, then Y represents the total cost of producing X units, which includes the fixed cost of 100 and the variable cost of 5 per unit.