An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume
Posted: Mon Jul 11, 2022 11:27 am
An important application of regression analysis in accounting isin the estimation of cost. By collecting data on volume and costand using the least squares method to develop an estimatedregression equation relating volume and cost, an accountant canestimate the cost associated with a particular manufacturingvolume. Consider the following sample of production volumes andtotal cost data for a manufacturing operation.