IIA ACCA CIA Challenge Exam IIA-ACCA Question # 160 Topic 17 Discussion

IIA ACCA CIA Challenge Exam IIA-ACCA Question # 160 Topic 17 Discussion

IIA-ACCA Exam Topic 17 Question 160 Discussion:
Question #: 160
Topic #: 17

Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered:

Activity Level -

Maintenance Cost

Month

Patient Days

Incurred

January

5,600

$7,900

February

7,100

$8,500

March

5,000

$7,400

April

6,500

$8,200

May

7,300

$9,100

June

8,000

$9,800

If the cost of maintenance is expressed in an equation, what is the independent variable for this data?


A.

Fixed cost.


B.

Variable cost.


C.

Total maintenance cost.


D.

Patient days.


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