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) intercept; dependent
D) constant; independent

Question

Quizplus · Accepted Answer

In a linear cost function derived from regression analysis, the cost driver is the independent variable and the cost to be explained is the dependent variable. The independent variable is typically a measure of the volume of activity, while the dependent variable is the cost that is being analyzed and predicted based on the activity level. Therefore, option B is the correct choice.

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