Your Boss Would Like You to Estimate the Fixed and Variable

question 38

Multiple Choice

Your boss would like you to estimate the fixed and variable components of a particular cost.Actual data for this cost over four recent periods appear below. Using the least-squares regression method,what is the cost formula for this cost?

• A) Y = $75.89 + $1.02X
• B) Y = $72.64 + $2.13X
• C) Y = $ 0.00 + $5.04X
• D) Y = $75.50 + $2.02X

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Definitions:

Legitimate Business Purpose

A reasonable, lawful reason for engaging in a particular business activity or decision.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize laws across the states.

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A term used to describe an action or a contract clause that is so unjust or overwhelmingly one-sided in favor of one party that it is contrary to good conscience.

Noncompete Clause

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