A. Cost drivers can be best identified by which of the following?

• Intuition or gut instinct

• Time Series analysis

• Regression

• Finding anomalies and outliers

b. What would be the independent variable in a regression determining How are firm overhead costs dependent on the time for production? at a manufacturing company?

• Indirect material costs

• Overhead costs

• Machine hours

• Direct material costs

When using regression analysis, the relationship between two variables matters when you are trying to understand __________.

• how a dependent variable impacts an independent variable

• how estimated trends from the past may continue into the future

• how future values are based on past values of the same variable

• how an independent variable impacts a dependent variable