A scatter graph is used to test the assumption that the relationship between cost and activity level is ________.
curvilinear
cyclical
unpredictable
linear
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Questions from Managerial Accounting (16th Edition) Managers often assume a strictly linear relationship between cost and level of activity. How can this practice be defended in light of the fact that many costs are curvilinear? Only variable costs can be differential costs. Do you agree? Explain.
A statistical program is recommended. Consider the following data for two variables, x and y. x 22 24 26 30 35 40 y 13 20 33 35 40 36 (a) Develop an estimated regression equation for the data of the form ŷ = b0 + b1x. (Round b0 to one decimal place and b1 to three decimal places.) ŷ = (b) Use the results from part (a) to test for a significant relationship between x and y. Use α =...
The linearity assumption is: a) the assumption that total cost depends on activity level. b)realistic in all costing situations. c) the assumption that the relationship between fixed costs and variable costs can be approximated by a curved line. d) the assumption that the relationship between fixed costs and variable costs can be approximated by a straight line.
Create four graphs showing the following four types of relationships between variables (Cozby p 79): positive linear relationship, negative linear relationship, curvilinear relationship, no relationship. You need to choose two variables for each different type of graph. In other words, you cannot use the same variables for all four graph. You may not use any of the examples in the textbook.
Viewing a scatter plot is an important step in understanding the relationship between two interval variables. In a curvilinear relationship, the correlation alone can mask the relationship between variables. How would you calculate r and plot the scores in order to see if your calculations accurately reflect the scatter plot? XY 10 Respondent 10
please help An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation. Total Cost Production Volume (units) 400 4,000 450 5,100 550 5,300 600 5,800 700...
Which of the following is not an assumption made when performing cost-volume-profit analysis? a) Worker efficiency is held constant. b) Number of units produced is greater than the number of units sold. c) The company produces within the relevant range of activity. d) There is a linear relationship between cost and volume for both fixed and variable cost.
________ is an underlying assumption of cost-volume-profit analysis. A : All costs can be classified as either variable or fixed with reasonable accuracy B : Changes in activity and other factors affect costs C : The behavior of both costs and revenues is curvilinear throughout the entire range of the activity index D : All units produced are either sold or in ending inventory
1-1 What are the three major types of product costs in a manufacturing company? 1-2 Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect labor, and (e) manufacturing overhead. Explain the difference between a product cost and a period 1-3 cost. 1-4 Distinguish between (a) a variable cost, (b) a fixed cost, and (c) a mixed cost. 1-5 What effect does an increase in the activity level have on- a. Unit fixed costs ? b....
I need help with Questions 20 , 21 and 22 Please. Thank You, Question 20 What assumption about the behaviour of total costs occurs within the relevant range of activity? linear and upward sloping linear and downward sloping curvilinear and upward sloping horizontal Question 21 Nextel Communications uses management by exception. Which differences between planned and actual results will it investigate? those that are material and non-controllable those that are controllable and non-controllable those that are material and controllable all...