Exam IIA-CIA-Part3 topic 1 question 172 discussion

Actual exam question from IIA's IIA-CIA-Part3

Question #: 172
Topic #: 1

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.

Show Suggested Answer

Suggested Answer: D 🗳️

by Brad626 at Nov. 4, 2020, 3:50 a.m.

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Brad626

Highly Voted 3 years, 4 months ago

How can reviewees answer this when it is badly-formatted ??

upvoted 7 times

Crazyhydra

5 months, 1 week ago

its a free site, dont complain

upvoted 1 times

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emtofid

Most Recent 1 month, 2 weeks ago

Selected Answer: D

Maintenance cost is the dependent variable since it depends on the activity level measured by patient days

upvoted 1 times

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EducatedAuditor

2 years, 4 months ago

No info is needed to find out which option is an independent variable. Fixed costs are as the name implies, fixed, not a variable. Variable cost and total maintenance cost must be depending on activity levels, so they're variables but not independent ones, hence the answer is "patience days", which has no dependency on any of these items. Hope it helps :)

upvoted 3 times

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chrisk123

2 years, 7 months ago

i dont even understand the format and question?