Following Are the Results from Two Different Simple Regression Analyses

question 110

Essay

Following are the results from two different simple regression analyses, estimating the costs of the purchasing department using number of purchase orders and number of vendors as potential cost drivers.

a)Which independent variable explains more of the variation in purchasing costs? Explain your choice.
b)Choose the most appropriate cost driver and write the cost function.
c)For an upcoming month, the number of vendors is estimated to be 150, while the number of purchase orders is estimated to be 340. Using the most appropriate cost driver, estimate the total cost for that month.
d)List several uncertainties that could affect the accuracy of the cost function in estimating the cost for the upcoming month.

Recognize the characteristics and effectiveness of different learning styles.

Understand the importance of non-verbal communication cues in effective communication.

Comprehend the role of boundaries in maintaining personal and emotional well-being.

Understand the significance of active listening in communication.

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Definitions:

Baking Department

A specific department within a food manufacturing or retail business that is responsible for producing baked goods.

Process Cost Systems

Accounting methods used in industries where similar products are produced in a continuous process, allocating costs proportionally across all units produced.

Work In Process Account

An account that tracks the costs associated with the production process, including labor, materials, and overhead, for products that are not yet completed.

Machine Hours

A measure of the amount of time a machine is operated during a given period, used as a basis for allocating manufacturing overhead.