Answered: Explain the meaning of the term least…

Business

Accounting

Explain the meaning of the term least squares in the least-squares regression method of cost estimation.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12Q: Explain how the high-low method is used for cost estimation. What, if any, are the limitations of...

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Question

Explain the meaning of the term least squares in the least-squares regression method of cost estimation.

Expert Solution

Step 1

Cost estimation:

Cost estimation is the process of ascertaining the behaviour of particular cost.

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