Regression Analysis Is Better Than the High-Low Method of Cost

question 92

Multiple Choice

Regression analysis is better than the high-low method of cost estimation because regression analysis:

• A) Is mathematical.
• B) Can provide greater precision and reliability.
• C) Fits data into a mathematical equation.
• D) Takes less time.
• E) Is a statistical method.

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Definitions:

Taxable Income

The amount of an individual's or corporation's income used to determine how much tax is owed to the federal government.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Sales And Excise Taxes

Sales and excise taxes are forms of indirect taxation imposed on the sale of certain goods and services, where excise taxes are often levied on specific products like tobacco or alcohol.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, often used as inputs in the production of other goods or services.