Write a cost equation given regression output (Learning Objective 5) A firm wanted to determine the relationship

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Write a cost equation given regression output (Learning Objective 5)

A firm wanted to determine the relationship between its monthly operating costs and a potential cost driver. The output of a regression analysis showed the following information:

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a. Given this output, write the firm’s monthly cost equation.

b. Should management use this equation to predict monthly operating costs? Explain your answer.

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Managerial Accounting

ISBN: 9780138129712

1st Edition

Authors: Linda Smith Bamber, Karen Wilken Braun, Jr. Harrison, Walter T.

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Question Posted: Jun 06, 2024 01:19 AM

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Write a cost equation given regression output (Learning Objective 5) A firm wanted to determine the relationship

Question:

Intercept Coefficient = 21,635 b X variable 1 Coefficient = 62.53 m R-Square 0.2312 =

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Managerial Accounting

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