The Managerial Accountant at the Bookcase Factory Prefers Regression Analysis

question 12

Multiple Choice

The managerial accountant at the Bookcase Factory prefers regression analysis to the high-low method because it is a more accurate method.The managerial accountant uses regression output and analyzes the following data to predict future costs:
Y =$250x + $625
Where,
Y = total monthly utility cost
X = number of guests
What is the intercept coefficient,or the vertical intercept of the fixed cost line,in the equation listed above?

• A)y
• B)$250x
• C)$625
• D)$250x + $625

---

Definitions:

Efficiency

The ability to achieve maximum productivity with minimum wasted effort or expense, or the use of resources so as to maximize the production of goods and services.

Military Establishment

This refers to the structures, institutions, and personnel that constitute a country's armed forces and defense infrastructure.

Mikhail Gorbachev

The last leader of the Soviet Union, serving from 1985 to 1991, known for his policies of glasnost (openness) and perestroika (restructuring).

Soviet Union

A former federation of communist republics that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).