In which step of estimating a cost function using quantitative analysis would a manager determine the dependent variable to use in a cost relationship?
A)Step 1: Choose the Dependent Variable.
B)Step 2: Identify the Independent Variable,or Cost Driver.
C)Step 3: Collect Data on the Dependent Variable and the Cost Driver.
D)Step 4: Plot the Data.
E)Step 5: Estimate the Cost Driver of the Estimated Cost Function.

Question

Quizplus · Accepted Answer

In Step 1, the manager chooses the dependent variable, which is the output or activity that influences the total cost incurred by the organization. The independent variable, or cost driver, is determined in Step 2 after the dependent variable has been chosen.

In Which Step of Estimating a Cost Function Using Quantitative