In linear cost function, which is y = a + bx, y is classified as

The correct answer is: C. predicted cost

In a linear cost function, $y$ is the total cost, $a$ is the fixed cost, and $b$ is the variable cost per unit. The predicted cost is the total cost of producing a certain number of units, which is equal to $a + bx$, where $x$ is the number of units produced.

• Fixed cost is the cost that does not change with the number of units produced. For example, the cost of renting a factory is a fixed cost.
• Variable cost is the cost that changes with the number of units produced. For example, the cost of raw materials is a variable cost.
• Price is the amount of money that a customer pays for a product or service. The price is not necessarily equal to the cost of producing the product or service.

In conclusion, the correct answer is: C. predicted cost.