Burmer Co Has Accumulated Data to Use in Preparing Its Annual

question 20

Multiple Choice

Burmer Co. has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be determined. Data regarding the machine hours and maintenance costs for the last year and the results of the regression analysis are as follows:A staff assistant has run regression analyses on the data and obtained the following output using Excel:
REGRESSION ANALYSIS
Y (Dependent) Variable: Maintenance Cost
X (Independent) Variable: Maintenance HoursThe t statistic for the independent variable:

• A) Is statistically significant at less than 5% risk
• B) At 11.46, is statistically significant
• C) At 52.78, is too large to be statistically significant
• D) Lies somewhere between 6.49 and 7.063

---

Definitions:

Throughput

The rate at which a system generates its product or completes a process, often used in manufacturing and software development.

Operating Expenses

The ongoing expenses incurred in the day-to-day operations of a business, excluding costs directly associated with the production of goods or services.

Performance Measurement

The process of evaluating and analyzing the effectiveness and efficiency of an action or operation, often using indicators or metrics.

Continuous Improvement

An ongoing effort to improve products, services, or processes through incremental and breakthrough improvements.