The following cost formula was developed using the monthly data for an accounting firm. Total cost = $87,100 + ($210 × number of tax returns)

The term $87,100
A) is the independent variable.
B) is the dependent variable.
C) is the intercept.
D) is the variable rate.

Question

The following cost formula was developed using the monthly data for an accounting firm. Total cost = $87,100 + ($210 × number of tax returns)
​
The term $87,100
A) is the independent variable.
B) is the dependent variable.
C) is the intercept.
D) is the variable rate.

Quizplus · Accepted Answer

The $87,100 term in the formula is the intercept, representing the fixed cost or the cost that remains constant regardless of the number of tax returns.

The Following Cost Formula Was Developed Using the Monthly Data