Figure 3-1. Total cost = Fixed cost + (Variable Rate ´ Output)
Refer to Figure 3-1.In the cost formula above which element would be the independent variable?
A)fixed cost
B)total cost
C)output
D)variable rate

Question

Quizplus · Accepted Answer

The independent variable is the variable that determines the value of the dependent variable. In this case, the output determines the total cost, while the fixed cost and variable rate remain constant. Therefore, output is the independent variable in this cost formula.