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Estimated Line of Cost Behavior
An analysis tool used to predict changes in costs relative to changes in business activities and volume, aiding in budgeting and cost management.
Least-Squares Regression Method
A statistical method used to estimate the relationship between variables by minimizing the differences between the observed values and the values predicted by a linear function.
Cost Behavior
The way in which costs change in relation to changes in a firm’s level of activity or volume of production.
Break-Even Point
The level of sales at which total revenues equal total costs, resulting in no profit or loss for the business.
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