(Appendix 3A)Below Are Cost and Activity Data for a Particular

question 54

Essay

(Appendix 3A)Below are cost and activity data for a particular cost over the last four periods.Your boss has asked you to analyze this cost so that management will have a better understanding of how this cost changes in response to changes in activity.
Required:
Using the least-squares regression method and the equations for a and b,estimate the cost formula for this cost.

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Definitions:

Classification

The systematic arrangement of business transactions or accounts into categories for reporting and analysis purposes.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on accounting rules.

Accounts Payable

Liabilities or amounts owed by a business to its suppliers for goods and services received but not yet paid for.

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.