A Cost Accountant Is Developing a Regression Model to Predict

question 36

Multiple Choice

A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a function of batch size (the number of boards produced in one lot or batch) .The dependent variable is ___.

• A)batch size
• B)unit variable cost
• C)fixed cost
• D)total cost
• E)total variable cost

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Definitions:

Noncash Deductions

Expenses that reduce taxable income but do not involve an actual cash outlay, such as depreciation.

Net Working Capital

The disparity between a firm's existing assets and its immediate debts.

NPV Computation

The process of calculating the Net Present Value of an investment, which assesses the profitability by comparing the present value of cash inflows to the initial investment.

Statement of Comprehensive Income

A financial statement merging the income statement and other comprehensive income items like unrealized gains or losses on investments.