The Following Cost Formula Was Developed Using the Monthly Data

question 51

Multiple Choice

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

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Definitions:

Planning Budget

A financial plan created to estimate a company’s revenue, expenses, and cash flow for a specific future period.

Refurbishing Materials

Materials used in the process of renovating or restoring products to a like-new condition.

Planning Budget

A budget prepared for a specific level of activity; it helps manage finances by projecting income and expenditures over a defined period.

Net Operating Income

The profit realized from a business's operations after subtracting all operating expenses but before taxes and interest.