The ScamMore Energy Company Is Attempting to Predict Natural Gas

question 58

Multiple Choice

The ScamMore Energy Company is attempting to predict natural gas consumption for the month of January.A random sample of 50 homes was used to fit a regression of gas usage (in CCF) using as predictors Temperature = the thermostat setting (degrees Fahrenheit) and Occupants = the number of household occupants.They obtained the following results: In testing each coefficient for a significant difference from zero (two-tailed test at α = .10) ,which is the most reasonable conclusion about the predictors?

• A)Temperature is highly significant;Occupants is barely significant.
• B)Temperature is not significant;Occupants is significant.
• C)Temperature is less significant than Occupants.
• D)Temperature is significant;Occupants is not significant.

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Definitions:

Allocation Base

A measure or criteria used to distribute costs or resources among different departments, products, or activities in a systematic manner.

Activity-Based Costing

Activity-based costing (ABC) is an accounting method that assigns overhead and indirect costs to specific activities, providing more accurate measures of the costs of producing specific products or services.

Activity Drivers

Factors that influence the costs and efficiency of business operations, serving as the basis for allocating expenses in activity-based costing.

Activities

In a business context, activities refer to all forms of operations and processes undertaken by an organization to achieve its objectives, including but not limited to operating, investing, and financing activities.