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 $210 represent?
A)the independent variable
B)the dependant variable
C)the intercept
D)the variable rate

Question

Quizplus · Accepted Answer

$210 represents the variable rate, which is the cost per unit of the independent variable (number of tax returns) in the cost formula.

The Following Cost Formula Was Developed Using the Monthly Data