Below are cost and activity data for a particular cost over the last four periods. Your boss has asked you to analyze this cost so that management will have a better understanding of how this cost changes in response to changes in activity.
Required:Using the least-squares regression method, estimate the cost formula for this cost.
Definitions:
Asset Turnover
An efficiency ratio that gauges a company's capability to use its assets for producing sales earnings.
Additions to Land
Expenditures made to increase the value of land, which can include costs for landscaping, site improvement, or acquiring adjacent land.
Parking Lots
Designated areas where vehicles can be parked temporarily. These can be commercial ventures or part of public infrastructure.
Fences
Structures erected to enclose or delineate areas, or to prevent unauthorized access or egress.
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