The Following Cost Formula Was Developed Using the Monthly Data

question 196

Multiple Choice

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 $87,100

• A) is the independent variable.
• B) is the dependent variable.
• C) is the intercept.
• D) is the variable rate.

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Definitions:

Expected to Grow

Typically refers to a business or investment that is anticipated to increase in size, value, or income over time.

Most You Should Pay

The maximum price at which it's considered reasonable to purchase an asset or service based on its expected future returns.

Future Cash Flows

Estimated financial gains or expenditures expected to occur in the future as a result of current investments or decisions.

Stock Ownership

Holding shares in a corporation, giving the shareholder a claim on part of the company's assets and earnings.