Regression analysis, Managerial Accounting

Assignment Help:

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.

 


Related Discussions:- Regression analysis

What is management accounting, Question 1 The following items are found in...

Question 1 The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. Sundry Debtors

Xs strategy, X's Strategy X will like to divide his play between his ro...

X's Strategy X will like to divide his play between his rows in such a way that his expected winnings or losses when Y plays the first column will be equal to his expected winn

Capital budgeting, A firm wants to buy a new machine and the following quot...

A firm wants to buy a new machine and the following quotation has been received. Cost of machine US$100 000 Freight and insurance US$5 000 The new machine will last for five

The games economists play, THE GAMES ECONOMISTS PLAY It sounds like a s...

THE GAMES ECONOMISTS PLAY It sounds like a sports fan's dream.  In Stockholm on October 11th, three men share a $1m prize for their skill at analyzing games. They are not telev

Extensions to linear programming, Extensions to Linear Programming In man...

Extensions to Linear Programming In many real situations the solutions to linear programming models make sense only if they have integer values. Rounding off the linear programmi

Accounting , I have two problems due in two hours can you do this for me?

I have two problems due in two hours can you do this for me?

Definition of cost reduction, Definition of Cost reduction Cost reducti...

Definition of Cost reduction Cost reduction is planned positive approach to reducing expenditure. Cost reduction exercises are planned campaigns to cut expenditure. It is a con

Case study, Your company provides you with a car. You are told only to driv...

Your company provides you with a car. You are told only to drive in Dade and Broward and only to use the car for business purposes. One weekend your family is going to the Keys. Yo

Choosing order quantity , CHOOSING ORDER QUANTITY (SIZE—PROBLEM) The ob...

CHOOSING ORDER QUANTITY (SIZE—PROBLEM) The objective of inventory decisions is usually to minimize total inventory costs to the company. Costs are ascribed to all elements whic

Capital budgeting – planning investments, The management of Popular Stores ...

The management of Popular Stores Sdn. Bhd. are in the process of exploring the company’s investment opportunities.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd