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 $210
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)
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The term $210
A) is the independent variable.
B) is the dependent variable.
C) is the intercept.
D) is the variable rate.

Quizplus · Accepted Answer

The term $210 is the variable rate, which represents the cost associated with each additional tax return prepared. It varies with the number of tax returns.

The Following Cost Formula Was Developed Using the Monthly Data