Which of the Following Statements Regarding Regression Analysis Is (Are)

question 79

Multiple Choice

Which of the following statements regarding regression analysis is (are) true?
(A) One way to control the effects of a nonlinear relationship between total costs and activity is reduce the relevant range.
(B) The linear cost estimate tends to understate the slope of the cost line in ranges close to capacity.

• A) Only A is true.
• B) Only B is true.
• C) Both of these are true.
• D) Neither of these is true.

---

Definitions:

Budgeting

The process of creating a plan to spend your money by estimating the revenue and expenses for a future period, used as a financial guide.

Actual Results

The real, measured outcomes of financial or operational activities, used to compare against budgeted or forecasted figures for analysis.

Administrative Expenses

Costs associated with the general administration of a business, such as salaries of executive officers, legal and secretarial expenses.

Client-visits

The instances when a client or customer visits a business premise for the purpose of obtaining services or conducting business.