Distinguish between least-squares regression and multiple regression as cost estimation methods.
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In the least-squares regression (LSR) method, the cost line is positioned to minimize the sum of the squared deviations between the cost line and the data points. The cost line fit to the data using LSR is called a regression line. The statistical equation for this line is represented by the formula: Y = a + bX, with X denoting activity level (independent variable) and Y denoting the total cost (dependent variable).
The multiple-regression line has all the same properties of the simple LSR line, but more than one independent variable is taken into consideration. The use of more independent variables can better explain accompanying changes in cost.
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At the beginning of the current year, Snell Co. total assets were $260,000 and its total liabilities were $180,200. During the year, the company reported total revenues of $105,000, total expenses of $82,000 and dividends of $11,000. There were no other changes in equity during the year and total assets at the end of the year were $272,000. The company's debt ratio at the end of the current year is:
A. 50.9%. B. 66.3%. C. 33.8%. D. 69.3%. E. 144.00%.
A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How many units must it produce and sell to break even?
A) 20,000 B) 25,000 C) 30,000 D) 35,000 E) 40,000
Provide two examples of each of the three types of intellectual capital discussed in the text.
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Prototype stores are commonly associated with business format franchising
Indicate whether the statement is true or false