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

In this cost formula, the term "number of tax returns" is the variable that is determining the amount of cost. It is the independent variable, as the changes in the number of tax returns will cause a corresponding change in the total cost.