IIA-CIA-Part3 Exam QuestionsBrowse all questions from this exam

IIA-CIA-Part3 Exam - Question 63


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?

Show Answer
Correct Answer: D

In this context, the independent variable is the one that is assumed to affect or determine the maintenance cost. Fixed cost remains constant regardless of patient days. Variable cost and total maintenance cost are dependent variables because they vary with the activity level, which in this case is represented by the number of patient days. Therefore, patient days are the independent variable as they influence the maintenance cost incurred.

Discussion

3 comments
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Brad626
Nov 4, 2020

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

Crazyhydra
Sep 28, 2023

its a free site, dont complain

chrisk123
Jul 14, 2021

i dont even understand the format and question?

EducatedAuditorOption: D
Oct 23, 2021

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 :)