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Least-Squares Regression
A statistical technique used to find the line of best fit for a set of data, minimizing the sum of the squares of the differences between the observed and predicted values.
Variable Cost
Costs that vary directly with the level of production output or activity, such as materials and labor directly involved in manufacturing.
Fixed Cost
Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, over a specified period.
High-Low Method
A technique in managerial accounting used to estimate fixed and variable costs by analyzing the highest and lowest levels of activity and the associated costs.
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