A Regression Analysis Between Sales (In $1000) and Price (In

question 68

Multiple Choice

A regression analysis between sales (in $1000) and price (in dollars) resulted in the following equation = 60 - 8X
The above equation implies that an

• A)increase of $1 in price is associated with a decrease of $8 in sales
• B)increase of $8 in price is associated with an decrease of $52,000 in sales
• C)increase of $1 in price is associated with a decrease of $52 in sales
• D)increase of $1 in price is associated with a decrease of $8000 in sales

Calculate depreciation using different methods such as double-declining-balance, straight-line, and units-of-production.

Identify the impact of residual value and useful life on the depreciation process.

Analyze the effects of depreciation on financial statements and asset valuation.

Know when and why companies may switch depreciation methods during the asset's life.