Figure 3-1.Total cost = Fixed cost + (Variable Rate * Output)
-Refer to Figure 3-1. In the cost formula above which element would be the independent variable?
A) fixed cost
B) total cost
C) output
D) variable rate

Question

Quizplus · Accepted Answer

The independent variable is the element that influences the other variables in the formula. In this case, the output is the independent variable as it affects the variable rate, which then affects the total cost. The fixed cost remains constant regardless of the output level.