A Cost Accountant Is Developing a Regression Model to Predict

question 58

Multiple Choice

A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a linear function of batch size (the number of boards produced in one lot or batch) , production plant (Kitchener and Hamilton) , and production shift (day and evening) .In this model, "batch size" is ___.

• A)a response variable
• B)an indicator variable
• C)a dependent variable
• D)a qualitative variable
• E)an independent variable

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Definitions:

Bushels

A unit of volume that is used to measure agricultural commodities in the United States.

Corn

A cereal grain primarily used as livestock feed, biofuel, and as a staple food in many parts of the world, significant in agricultural economics.

Cross-hedging

An investment strategy used to manage risk by investing in assets indirectly related to the primary exposure.

Hedging

A risk management strategy used to limit or offset the probability of loss from fluctuations in the prices of commodities, currencies, or securities.