Regression analysis, Managerial Accounting

REGRESSION ANALYSIS

A regression equation identifies an estimated relationship between a dependent variable (the cost) and one or more independent variables (the cost driver). When the equation includes only one independent variable then it is referred to as simple regression and its form is:

489_Untitled.jpg

Where,

Y is the predicted value of Y
a and b are Constant
x is the cost driver

When the equation includes 2 or more independent variables, it is referred to as multiple regression and is of the form:

Y = a + b 1 x1 + b2 x2 + …….bn xn for n independent variables.

 

Posted Date: 12/4/2012 7:41:30 AM | Location : United States







Related Discussions:- Regression analysis, Assignment Help, Ask Question on Regression analysis, Get Answer, Expert's Help, Regression analysis Discussions

Write discussion on Regression analysis
Your posts are moderated
Related Questions
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?

So as to makes sure that the receivables are collected in occupied and on due date by the customers, prior information of their credit worthiness must be obtainable. This informati

Ask question Toll House makes chocolate chip cookies. The cookies pass through three production processes: mixing the cookie dough, baking, and packaging. Toll House uses process c

) Allgood Inc. has fixed costs of $480,000. It has a unit selling price of $6, unit variable cost of $4.50, and a target net income of $1,500,000. HOW TO COMPUTE

Non-zero lead time (determining reorder point) This basic EOQ model assumes that the suppliers lead time is zero (i.e. goods are delivered immediately on the day the order was

RELEVANT COSTS FOR NON-ROUTINE DECISIONS A relevant cost is a cost that is appropriate to a specific management decision. To be relevant, a cost should be: 1) Future cost

different methods used to assign manufacturing overhead

Parameter prediction error: This is another aspect of faulty planning. As Hongren says, ‘planning decisions are based on predictions of future costs, future selling price, fut

Explain Short term budgets Short term budgets: these budgets are generally for one or two years and are in the form of monetary terms. The consumer's good industries like su

Steps of choosing an accounting based performance measure Consider the overall goal of the organization as a whole. It is important to choose a measure of accomplishment that r