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 "number of tax returns"
A) is the independent variable.
B) is the dependent variable.
C) is the intercept.
D) is the variable rate.

Question

Quizplus · Accepted Answer

The "number of tax returns" is the independent variable because it is the factor that determines the total cost, not the result of it. The cost formula shows that the total cost depends on how many tax returns are processed.

The Following Cost Formula Was Developed Using the Monthly Data