The Method of Least Squares

question 44

Multiple Choice

The method of least squares

• A) uses the results of regression analysis to construct a cost formula.
• B) is the least accurate method.
• C) analyzes a cost relationship by plotting the data points on a graph.
• D) can easily be calculated by hand.

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Definitions:

Dividends

Dividends are payments made by a corporation to its shareholders, typically out of its profits, as a distribution of earnings.

Net Income

The remaining earnings of a business after subtracting all expenditures and taxes from its total income.

Financial Position

A snapshot of a company's assets, liabilities, and equity at a specific point in time, indicating the financial health and stability of the entity.

Operating Cash Flow

The cash generated from a company's normal business operations, reflecting how much cash is generated from revenues after operating expenses.