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 $210
A)is the independent variable.
B)is the dependant variable.
C)is the intercept.
D)is the variable rate.

Question

Quizplus · Accepted Answer

The term $210 is multiplied by the number of tax returns, so it is the variable rate. The intercept is the fixed cost of $87,100. The independent variable is the number of tax returns, and the dependent variable is the total cost.