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What is the significance of the function y = a + bx?
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Answer / bhavani
The function y = a + bx represents the function of a
straight line and is often used by management accountants
when discussing the behaviour of costs. In this
context 'a' represents the total fixed cost in a
situation, 'b' represents the variable costs per
unit and x the number of units. When 'b' is multiplied
by 'x', we obtain the total variable costs.
The function y = a + bx can represent the total costs of an
organisation or department or it can represent a semi
variable cost.
| Is This Answer Correct ? | 53 Yes | 5 No |
Answer / rahul
in this y is dependent function.lets take an example of
sales which is y and x independent function(advertisement).
if u increase the adv the sale will increase.this relation
is used in management programs in buisness research method.
this is used for analysis and in this a is fixed cost this
is the equation of regression analysis.
| Is This Answer Correct ? | 14 Yes | 5 No |
Answer / varun sawhney
it represents the value of 'y' on 'x' mean when 'x' is
given x and y are dependand value while a b are constant
value
| Is This Answer Correct ? | 3 Yes | 9 No |
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