fill in the blank question\nfor a cost formula to forecast the total of fixed costs and variable costs…

fill in the blank question\nfor a cost formula to forecast the total of fixed costs and variable costs expected to be incurred, it must be based on a specific level of\n\nneed help? review these concept resources.\nread about the concept

fill in the blank question\nfor a cost formula to forecast the total of fixed costs and variable costs expected to be incurred, it must be based on a specific level of\n\nneed help? review these concept resources.\nread about the concept

Answer

Brief Explanations:

Cost formulas in business (specifically in management accounting) are used to predict costs. Fixed costs remain constant within a relevant range, and variable costs change based on the level of activity. A cost formula ( y = a+bx) (where (y) is total cost, (a) is fixed cost, (b) is variable cost per unit of activity, and (x) is the level of activity) requires knowing the level of activity ((x)) to calculate the total cost ((y)). For example, in a manufacturing firm, if the variable cost per unit of production (activity) is known and the fixed cost is known, to find the total cost, the number of units produced (level of activity) must be specified.

Answer:

activity