Compare least squares regression and the scattergraph method of analyzing mixed costs.
What will be an ideal response?
Answers will vary.
Both methods involve fitting a line to a set of cost and volume data points. Both identify the fixed and variable components of the mixed cost: the fixed component is the y-intercept for the line, and the variable component is the line's slope. The scattergraph method involves subjectivity: the line fitted to the data is the line that "looks best" in the judgment of the cost analyst. The least squares approach is more objective: it is a statistical method of fitting the best line to the data points. The least squares method also generates some statistics that can be used to determine how well the line actually does fit the data.
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Performance measures that provide a focus on the efficiency and effectiveness of production processes are referred to as ____________________ measures
Fill in the blank(s) with correct word
Which of the following statements associated with traditional overhead allocation is true?
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Which of the following is not the proper financial reporting procedure for a gain or loss on disposal of an asset?
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