2) Which of the following techniques is not used to analyze cost behavior? A) Least-squares regression. B) Visual-fit method. O High-low method. D) Multiple regression. E) Linear programming.
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- 12) Which of the following techniques is not used to analyze cost behavior? A) Least-squares regression. B) Visual-fit method. O High-low method. D) Multiple regression. E) Linear programming.Obtaining regression estimates for cost estimation requires establishing the existence of a logical relation between activities and the cost to be estimated. Which of the following is not used to refer to these activities? Multiple Choice predictors. dependent variables. X terms. independent variables.Which of the following is not one of the main issues regarding data collection which can significantly affect precision and reliability when using regression or any other cost estimation method? Multiple Choice Time period choice. Nonlinearity. Relevant range. Data accuracy.
- “All the independent variables in a cost function estimated with regression analysis are cost drivers.” Do you agree? Explain.Fill in the blanks. a. In multiple linear regression analysis, the independent variables are called ______. b. In multiple linear regression analysis, the dependent variable is called ______.From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?
- High-low and regression cost estimation methods are alike in that they both: Select one: O a. Have a slope term but not an intercept term. O b. Provide the same accuracy and reliability O c. Have an intercept term but not a slope term. O d. Have an intercept term and a slope term.Required:Solve the variable and fixed cost component using: a) High-Low method b) Least-Squares Regression method_____Identifying the relationship between the activity and the costs is a key step in which of the following cost estimation methods? a) Scattergraph. b) High-low method. c) Linear regression. d) Account analysis.
- The independent variable in regression analysis is: Multiple Choice Usually expressed as a range of values. The cost to be estimated. Hard to define because of its independence. The cost driver used to estimate the value of the dependent variable. Always a volume-based cost driver.17. Which cost estimation method is the least accurate or the most subjective? account analysis scatter graph method regression analysis engineering method high-low methodDescribe the visual-fit method of cost estimation. What are the main strengths and weaknesses of this method?