Which of the Following Is an Activity-Based Cost Driver

question 40

Multiple Choice

Which of the following is an activity-based cost driver?

• A) Number of machine setups
• B) Material cost
• C) Machine hours
• D) All of these answers are correct.

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Definitions:

Regression Model

A form of predictive modelling technique which investigates the relationship between a dependent (target) and independent variable(s) (predictor).

Correlation Model

A statistical technique used to understand the strength and direction of the relationship between two variables.

Standard Error

The standard deviation of a point estimator.

Ith Residual

The difference between the observed value of the dependent variable and the value predicted using the estimated regression equation; for the ith observation the ith residual is yi − yˆi.