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Exhibit 16-1
In a regression analysis involving 25 observations, the following estimated regression equation was developed. Also, the following standard errors and the sum of squares were obtained.
Sb1 = 3
Sb2 = 6
Sb3 = 7
SST = 4,800
SSE = 1,296
-Refer to Exhibit 16-1. The test statistic for testing the significance of the model is
Gross Sales
The total sales revenue of a company without any deductions for returns, allowances, or discounts.
Cost of Sales
The direct costs attributable to the production of the goods sold by a company, including raw materials, labor, and manufacturing overhead.
Percentage of Credit Sales Method
An accounting technique used to estimate the value of uncollectible accounts receivable based on a historical percentage of sales that resulted in bad debts.
Net Sales
The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.
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