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i. The technique used to measure the strength of the relationship between two sets of variables
Using the coefficient of correlation and the coefficient of determination is called regression analysis.
ii. In order to visualize the form of the regression equation, we can draw a scatter diagram.
iii. A regression equation may be determined using a mathematical method called the least squares
Principle.
Variable Expenses
Variable expenses are costs that change in proportion with the level of activity or production volume, such as raw materials and direct labor.
Contribution Margin
The residual sum from sales income following the subtraction of variable costs.
Segment Margin
The contribution margin of a specific segment of a business, excluding common fixed costs, to assess the segment's financial performance independently.
Traceable Fixed Expenses
Fixed costs that can be directly associated with a specific business segment or a product.
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