Wesley Enterprises Has Determined That Three Variables Play a Key

question 71

Multiple Choice

Wesley Enterprises has determined that three variables play a key role in determining company revenues. To arrive at an objective forecast of revenues for the next accounting period, Wesley should use:

• A) simple regression.
• B) multiple regression.
• C) a scatter diagram.
• D) complex regression.
• E) the high-low method.

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Definitions:

Average Fixed Costs

Costs in production that are stable and do not vary with the amount of output, divided by the quantity of goods produced.

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a certain period.

Total Cost Schedule

A detailed list that shows the total cost incurred at various levels of output or production.

Total Variable Cost

The sum of all costs that vary with the output level in the production of goods or services.