In describing the cost formula equation Y = a + bX, which of the following statements is NOT correct? A As "X" increases "Y" increases. B "X" is the level of activity. In the high-low method, "b" equals change in activity divided by change in costs. "a" is the fixed component.
In describing the cost formula equation Y = a + bX, which of the following statements is NOT correct? A As "X" increases "Y" increases. B "X" is the level of activity. In the high-low method, "b" equals change in activity divided by change in costs. "a" is the fixed component.
Chapter1: Financial Statements And Business Decisions
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![In describing the cost formula equation Y = a + bX, which of the following statements is NOT correct?
(A As "X" increases "Y" increases.
(B) "X" is the level of activity.
In the high-low method, "b" equals change in activity divided by change in costs.
"a" is the fixed component.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe4d4bb5a-7d95-42e4-ba11-932d9c8213ee%2Fdb2f3441-4b9a-4612-990a-a0ef8a9d726b%2Fqcen3li_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In describing the cost formula equation Y = a + bX, which of the following statements is NOT correct?
(A As "X" increases "Y" increases.
(B) "X" is the level of activity.
In the high-low method, "b" equals change in activity divided by change in costs.
"a" is the fixed component.
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