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 "total cost"
A)is the independent variable.
B)is the dependant variable.
C)is the intercept.
D)is the variable rate.

Question

Quizplus · Accepted Answer

Total cost is the dependent variable because it is being determined by the number of tax returns. The intercept, $87,100, is a fixed cost and not a variable rate.