In the linear cost function derived from regression analysis,the cost driver is the ________ variable and the cost to be explained is the ________ variable.
A)dependent; independent
B)independent; dependent
C)fixed cost; variable cost
D)mixed cost; dependent

Question

Quizplus · Accepted Answer

In regression analysis, the independent variable is the cost driver, which explains the variation in the dependent variable, i.e., the cost to be explained. Therefore, the best choice is B where the independent variable is the cost driver, and the dependent variable is the cost to be explained.

In the Linear Cost Function Derived from Regression Analysis,the Cost