10) A perfect straight line would render an R-square value of zero.

11) If the data points were randomly scattered, the R-square value would be closer to 1 than 0.

12) An R-square value over .80 generally indicates that the cost equation is very reliable for predicting costs at other volumes within the relevant range.

13) Regression analysis can be used in ABC implementations to help managers select the primary cost driver for an activity cost pool.

14) An R-square value of 1.0 indicates a perfect relationship between the volume of activity and the cost being analyzed.

15) Regression analysis uses all data points, not just the highest and lowest volume data points.

16) A regression equation's variable cost per unit is represented by the ________ on the regression analysis output.

A) Intercept coefficient

B) X variable 1 coefficient

C) R-square

D) R

E) Residual

17) A regression equation's fixed cost component is represented by the ________ on the regression analysis output.

A) Intercept coefficient

B) X variable 1 coefficient

C) R-square

D) Residual

18) A regression equation's goodness of fit is represented by the ________ on the regression analysis output.

A) Intercept coefficient

B) X variable 1 coefficient

C) R-square

D) Residual

19) The slope of a mixed cost line is represented by the ________ on the regression analysis output.

A) Intercept coefficient

B) X variable 1 coefficient

C) R-square

D) Residual