R-squared is a measure of a. The spurious relationship between cost and activity D. The fxed cost component C The variable cost per unit activity d. How well the regression line accounts for the changes in the dependent variable

R-squared is a measure of a. The spurious relationship between cost and activity D. The fxed cost component C The variable cost per unit activity d. How well the regression line accounts for the changes in the dependent variable

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 18MC: A scatter graph is used to test the assumption that the relationship between cost and activity level...

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Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

R-squared is a measure of
a. The spurious relationship between cost and activity
b. The fxed cost component
C The variable cost per unit activity
d. How well the regression line accounts for the changes in the dependent variable

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Similar questions

A scatter graph is used to test the assumption that the relationship between cost and activity level is __________________________. A. curvilinear B. cyclical C. unpredictable D. linear
Which of the following graphs illustrates how unit variable costs behave with changes in total units produced?
Which of the following methods of cost estimation relies on only two data points? A. the high-low method B. account analysis C. least-squares regression D. SWOT analysis.
How does the length of the time horizon affect the classification of a cost as fixed or variable? What is the meaning of short run? Long run?
Which of the following is one of the two approaches used to analyze data in the decision to keep or discontinue a segment? A. comparing contribution margins and fixed costs B. comparing contribution margins and variable costs C. comparing gross margin and variable costs D. comparing total contribution margin under each alternative
Describe how total variable costs and unit variable costs behave with changes in the level of activity.
The variable overhead efficiency variance is caused by the difference between which of the following? A. actual and budgeted units B. actual and standard allocation base C. actual and standard overhead rates D. actual units and actual overhead rates
In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs C. total costs D. units of production
In describing the cost formula equation, Y = a + bX, which of the following is correct?a. “Y” is the independent variableb. “a” is the variable cost per unitc. “a” and “b” are valid for all levels of activityd. in the high-low method, “b” equals the change in cost divided by the change in activity.
In the cost equation TC = F + VX, “V” is best described as the: Multiple Choice intercept of the cost equation. total costs that do not vary with changes in the activity level. activity level used to estimate the dependent variable. slope of the cost equation.
In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple Choice O O O "Y" is the independent variable. "a" is the variable cost per unit. "a" and "b" are valid for all levels of activity. in the high-low method, "b" equals the change in cost divided by the change in activity.
Simple regression analysis provides the means to evaluate a line of regression, which is fitted to a plot of data and represents the a. way costs change with respect to dependent variable.b. way costs change with respect to both independent and dependent variables.c. variability expense with pesos of productiond. way costs change with respect to independent variable.