In a Costing System

question 280

Multiple Choice

In a costing system:

• A)a cost object should be a product and not a department or a geographic territory.
• B)cost tracing allocates indirect costs.
• C)cost allocation assigns direct costs.
• D)a cost-allocation base can be either financial or non-financial.

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Definitions:

Linear Regression Model

A statistical method for predicting the value of a dependent variable based on the value(s) of one or more independent variables, assuming a linear relationship.

Slope

Refers to the measure of the steepness, incline, or grade of a line, indicating the rate at which the dependent variable changes over the independent variable.

Residuals

Differences between observed and predicted values in a statistical model, representing unexplained variation.

Predicted Values

Estimates or forecasts of a variable or outcome based on a model or analysis of correlated variables.