A Cost Accountant Is Developing a Regression Model to Predict

question 72

Multiple Choice

A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a linear function of batch size (the number of boards produced in one lot or batch) , production plant (Kingsland, and Yorktown) , and production shift (day, and evening) .The response variable in this model is ______.

• A)batch size
• B)production shift
• C)production plant
• D)total cost
• E)variable cost

---

Definitions:

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions related to a business, leading to the creation of financial statements.

Managerial Accounting

The practice of analyzing, interpreting, and communicating financial information to managers for the purposes of business decision-making.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction, specifically the U.S.

FASB Statements

Formal documents issued by the Financial Accounting Standards Board, setting forth standards and principles for financial accounting and reporting in the U.S.