The Least-Squares Regression Method Is

question 8

Multiple Choice

The least-squares regression method is:

• A) A graphical method to identify cost behavior.
• B) A statistical method to identify cost behavior.
• C) An algebraic method to identify cost behavior.
• D) The only identify cost estimation method allowed by GAAP.
• E) A cost estimation method that only uses the two extreme values.

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Definitions:

Inventory

The raw materials, work-in-progress goods, and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Source Of Cash

Refers to the origins of funds for a business or individual, such as operations, financing activities, or investment returns.

Asset Account

This refers to any account on a company's balance sheet that represents a tangible or intangible resource owned by the company that has economic value.

Liquid Accounts

Refers to financial accounts which hold assets that can be readily converted into cash, often with little to no loss in value, such as savings accounts or money market accounts.