In Regression Analysis If the Dependent Variable Is Measured in Dollars

question 128

Multiple Choice

In regression analysis if the dependent variable is measured in dollars, the independent variable

• A)must also be in dollars
• B)must be in some units of currency
• C)can be any units
• D)cannot be in dollars

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Definitions:

Unit Product Costs

The cost assigned to each unit of product, which includes direct materials, direct labor, and allocated manufacturing overhead.

Facility-Level Costs

These are the costs that are necessary to operate a facility, such as a manufacturing plant or a warehouse, and do not vary significantly with production volume.

Overhead Cost

Expenses related to the ongoing operational costs of running a business that are not directly tied to the production of goods or services.

Traditional Costing System

A costing methodology that allocates overhead costs to products based on a predetermined rate, often using direct labor hours or machine hours as the allocation base.