When using regression analysis to predict mixed cost behavior, which of the following would be the dependent variable?
A) The highest level of activity.
B) The lowest level of activity.
C) The mixed cost at a given level of production.
D) The variable cost per unit.

Question

Quizplus · Accepted Answer

The dependent variable in a regression analysis to predict mixed cost behavior would be the mixed cost at a given level of production. The independent variable would be the level of activity. The goal is to determine the fixed and variable components of the mixed cost, therefore the mixed cost is the focus of the analysis. The highest and lowest levels of activity and the variable cost per unit would not be appropriate dependent variables in this analysis.

When Using Regression Analysis to Predict Mixed Cost Behavior, Which