A cost accountant is developing a regression model to predict the total cost of producing a batch of car seats as a function of batch size (the number of seats produced in one lot or batch).The explanatory variable is ___.
A)batch size
B)unit variable cost
C)fixed cost
D)total cost
E)total variable cost

Question

Quizplus · Accepted Answer

The explanatory variable, or independent variable, in this regression model is batch size. It is being used to predict the total cost of producing a batch of car seats.

A Cost Accountant Is Developing a Regression Model to Predict