The following cost formula was developed using the monthly data for Nova Scotia Accounting Firm.
Total cost = $87,100 + ($210 × number of tax returns)
-Refer to the Figure.What does "number of tax returns" represent?
A)the independent variable
B)the dependant variable
C)the intercept
D)the variable rate

Question

Quizplus · Accepted Answer

The "number of tax returns" represents the independent variable because it is the factor that determines the total cost, with the cost changing based on the number of tax returns processed.

The Following Cost Formula Was Developed Using the Monthly Data