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
Directing There are number of good plans which are never realized. To realize a plan it requires the initiation and   direction of the number of actions. Often, thes


Accounts Payable Turnover Ratio is a short-term liquidity measure which is used to calculate the rate at which a company pays off its suppliers. Accounts payable turnover ratio is

Case study of Orion Financial Management - Portfolio Management? Maria Gilbert is a principal in the company of Orion Financial Management. For 20 years she was chief investm

Steps in Strategic Cost Analysis 1) Recognize the suitable value chain and allocate costs and assets to it. 2) Identify the cost drivers of each value activity and how they int


identify and briefly describe four trends in macro market environment which influence on the selected industry?

JOINT PRODUCT DECISIONS When a manufacturing Company carries out a process operation in which 2 or more joint products are made from a common process a number of decision troub

Incremental budgeting Incremental budgeting uses a budget prepared using a last period budget or actual performance as a base with incremental amount asses for the new budget p

Excess machine hours 20,000. Received offers from two companies to buy 210,000 units of F at 0.60 and 300,000 units of D at 0.70. Estimated costs for the two products are;