Which of the Following Should Be Checked Before Conducting Regression

question 105

Multiple Choice

Which of the following should be checked before conducting regression analysis:
I. The relationship between the cost and cost driver is economically plausible.
II. Data from unusual periods has been eliminated.
III. The number of observations is sufficient.

• A) I only
• B) I and II only
• C) II and III only
• D) I, II, and III

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Definitions:

Units Produced

Refers to the total quantity of items manufactured by a company within a specific period, often used to assess productivity and operational efficiency.

Fiscal Year

An accounting period that is one year in length.

Raw Materials

Basic materials used in the production process to make goods and products, typically unprocessed or minimally processed.

Finished Product

A final good ready for sale after undergoing all stages of production.