The Independent Variable in Regression Analysis Is

question 115

Multiple Choice

The independent variable in regression analysis is:

• A) The cost to be estimated.
• B) The cost driver used to estimate the value of the dependent variable.
• C) Hard to define because of its independence.
• D) Usually expressed as a range of values.
• E) Always a volume-based cost driver.

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Definitions:

Contributed Capital

The capital that shareholders contribute to a company beyond the par value of the shares they purchase.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, typically with predetermined dividend payments.

Dividends

Dividends are distributions of a portion of a company's earnings decided by the board of directors to its shareholders.

Authorized Shares

The maximum number of shares that a corporation is legally permitted to issue, as stated in its articles of incorporation.