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
identify and explain the many classification of costs for planning, control.performance evaluation and decision making.

Steady state condition In many cases, the Markov process will converge to a steady state or equilibrium. In general, as number of transitions `n' increase, the state values

Cost comprise impact Some of the policy choices which tend to have the maximum impact on cost comprise: Product performance, configuration, and characteristics Mix and

Creditors turnover ratio ( or payables turnover ratio) Meaning: this ratio establishes a relation ship between net credit purchases and average trade creditors. Objective

C-V-P ANALYSIS – MULTIPLE PRODUCTS The simple product CVP analysis can be extended to handle the more realistic situations where the firm produces more than one product. The o

The working capital needs of a firm are influenced by many factors. The important ones are as follows: Nature of business: The working capital necessity of a firm is closely l

According to the Philadelphia Inquirer, in 2004 the city of Philadelphia planned to spend $14 million to convert the Convention Center into an appropriate venue for the Republican

Case Study Labor standards Geeta & Company has experienced increased production costs. The primary area of concern identified by management is direct labor. The company is conside

Game Theory Game theory was developed for the purpose of analyzing competitive situation involving conflicting interests. In game theory, there are assumed to be two or more pe

Representation of Simplex method We shall use the example previously stated for the graphical solution. The standard form of the model is given by: Maximize :  Z = 3X E + 2