The Armer Company Is Accumulating Data to Be Used in Preparing

question 51

Multiple Choice

The Armer Company is accumulating data to be used in preparing its annual profit plan for the coming year.The cost behavior pattern of the maintenance costs must be determined.The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs.Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) What would be the cost equation if regression analysis is used?

• A)Maintenance Costs = 7.2884 + 684.65 × Hours of Activity.
• B)Maintenance Costs = 684.65 + 49.515 × Hours of Activity.
• C)Maintenance Costs = 684.65 + 7.2884 × Hours of Activity.
• D)Maintenance Costs = 34.469 + .99724 × Hours of Activity.

---

Definitions:

Jury Selection

The process by which potential jurors are questioned and selected to serve on a jury during a legal proceeding.

Voir Dire

The process of questioning potential jurors to ensure that the jury will be made up of unbiased individuals.

Jury

A group of citizens convened to render an impartial verdict (a finding of fact on a question) officially submitted to them by a court.

State Court

State courts are judicial bodies within the individual states of the United States that deal with matters under state laws and jurisdiction.