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The Partridge Corporation Used Regression Analysis to Predict the Annual M M

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The Partridge Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: Indirect M M aterials Cost
Explained by Units Produced
 Constant $21,885 Standard err or of Y estimate $4,560 R - squared 0.7832 No. of obs ervations 22 Degrees of freedom 20 X coefficient(s)  9.75 Standard error of coefficient(s)  4.1876\begin{array}{ll}\text { Constant } & \$ 21,885 \\\text { Standard err or of Y estimate } & \$ 4,560 \\\text { R - squared } & 0.7832 \\\text { No. of obs ervations } & 22 \\\text { Degrees of freedom } & 20 \\\text { X coefficient(s) } & 9.75 \\\text { Standard error of coefficient(s) } & 4.1876\end{array} The variable cost per unit of product is:

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on a company's balance sheet.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

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