Figure 3-10.The following cost formula was developed using the monthly data for an accounting firm.Total cost = $87,100 + ($210 * number of tax returns)
-Refer to Figure 3-10. The term "number of tax returns"
A) is the independent variable.
B) is the dependant variable.
C) is the intercept.
D) is the variable rate.

Question

Quizplus · Accepted Answer

The "number of tax returns" is the independent variable because it is the factor that influences the total cost, not the outcome of it. The cost formula shows that the total cost depends on the number of tax returns processed.