An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume

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An Important Application Of Regression Analysis In Accounting Is In The Estimation Of Cost By Collecting Data On Volume 1 (22.11 KiB) Viewed 18 times

An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the guares method to deve op an estimated regression equation relating volume and cost, an accountant can estimate the cost asocated with a particular manufacturing volume. Consider the following sample of production Volumes and total code for a manufacturing operation Production Volume Total Cost (units) 400 4.000 450 100 550 5.400 600 5.900 100 300 950 7.100 (*) Use these data to develop an estimated regression ecuation est could be used to predict the total cost for a reproduction. Round your to be done room) -7.6x +1246 67 x (b) What is the variable cost (in dollar per un produced 5760 c) Compute the comment of determinado Round your answer to the decima 033 what percentage of the variation in total cost can be capained by productos volume (Bound your store del place) (d) The company's poction schedule tho 650 unts must be produced next month Predict the total cost in dolor for this period to the rest x