In the estimation of a cost function using quantitative analysis, the independent variable ________.
A) is the cost to be predicted
B) is the product of fixed costs and slope coefficient
C) is the factor used to predict the dependent variable
D) is the product of total costs and slope coefficient

Question

Quizplus · Accepted Answer

In the estimation of a cost function using quantitative analysis, the independent variable is the factor used to predict the dependent variable. The dependent variable is the cost to be predicted, while the slope coefficient is derived from the data and used to estimate the relationship between the independent and dependent variables. Fixed costs and total costs may be included in the analysis as well, but they are not the independent variable. Therefore, the best choice is C.

In the Estimation of a Cost Function Using Quantitative Analysis