When using regression analysis to predict mixed cost behavior, which of the following would be the independent 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 volume of production that drives a particular amount of mixed cost.

Question

Quizplus · Accepted Answer

The volume of production that drives a particular amount of mixed cost would be the independent variable in regression analysis to predict mixed cost behavior. This variable drives the behavior of the mixed cost and can be used to predict the cost at different levels of production. The highest and lowest levels of activity, as well as the mixed cost at a given level of production, would be the dependent variable in this scenario as they are all affected by the volume of production.

When Using Regression Analysis to Predict Mixed Cost Behavior, Which