Illustration of coefficient of determination , Managerial Accounting

Illustration of Coefficient of Determination

The production manager of XYZ Company is concerned about the apparent fluctuation in efficiency and wants to determine how labour costs (in Sh.) are associated to volume. The following data presents results of the 12 most recent weeks.

 

1140_Untitled.jpg



     r2[12(132211) – (430) (3549)]2
            [12 (16234) – (430)2] {12 (1104005 – (3549)2}

        = 0.565

About 56.5% of the variations in labour cost can be explained by variations in units produced while about 43.5% of the variation in labour cost is explained by other independent variables and the error term.

 

Posted Date: 12/5/2012 5:19:50 AM | Location : United States







Related Discussions:- Illustration of coefficient of determination , Assignment Help, Ask Question on Illustration of coefficient of determination , Get Answer, Expert's Help, Illustration of coefficient of determination Discussions

Write discussion on Illustration of coefficient of determination
Your posts are moderated
Related Questions
Cash to debt service ratio  Cash to debt service ratio also known as debt cash flow coverage ratio is an improvement over the interest coverage ratio and is calculated. The

JIT purchasing On the other hand is a purchasing system in which material purchased are contracted so as that the receipt and usage of materials to the maximum extent possible,

When the stock market is going up over a long period of time, investors can become complacent about the risks of being a stockholder. After the significant decline of the stock mar

tha accountant''s approach to CVP ANALYSIS HAS BEEN CRITICISED IN THATIT DOES NOT DEAL WITH THE FOLLOWING; CHANGES IN PRODUCT MIX. WHY IS IT SO?


Difference between a fixed and flexible budget Fixed budget A fixed budget remains the same irrespective of changed situations. It remains inflexible even if volume of

given the above data what would the breakeven in units and dollars be if u wanted a necessary after tax profit of $ 36,000 (assume a 30% tax rate ) units __________ ales dollars _

What is  Scientific standards and Variance analysis The important steps of standard costing as described above may be summarized as follows; 1) Scientific standards: stand

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

What is cvp?