When estimating fixed and variable costs, it is possible to have an equation with a negative intercept.

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When estimating fixed and variable costs, it is possible to have an equation with a negative intercept. Does this mean that at zero production the company has negative fixed costs?

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Managerial Accounting An Introduction to Concepts Methods and Uses

ISBN: 978-0324639766

10th Edition

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil

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Question Posted: May 31, 2012 04:20 AM

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When estimating fixed and variable costs, it is possible to have an equation with a negative intercept.

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It is possible for empirical data to show a negati...View the full answer

Managerial Accounting An Introduction to Concepts Methods and Uses

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