The New Cost Analyst in Your Accounting Department Has Just

question 88

Essay

The new cost analyst in your accounting department has just received a computer-generated report that contains the results of a simple regression program for cost estimation. The summary results of the report appear as follows:
Required:
a. What is the cost estimation equation according to the report?
b. What is the goodness of fit? What does it tell about the estimating equation?

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Definitions:

Asset Purchase

The acquisition of assets from a company, such as equipment, inventory, or intellectual property, as opposed to buying the company's stock or shares.

In-Kind Purchase

Acquiring goods or services through a direct exchange of other goods or services without the use of money.

Shareholder's Derivative Suit

A lawsuit filed by a shareholder on behalf of a corporation against a third party, often an insider of the corporation, alleging harm to the corporation.

Dividend

A distribution of corporate profits or income ordered by the directors and paid to the shareholders.