Which of the following is an example of a committed fixed cost?

Multiple Choice

• Employee training program

• Travel expenses

• Advertising budget

• Rent expense on leased warehouse Star, Incorporated, used Excel to run a least-squares regression analysis, which resulted in the following output:

  Regression Statistics
  Multiple R	0.9780
  R Square	0.9542
  Observations	30

  	Coefficients	Standard Error	T Stat	P-Value
  Intercept	174,805	61,405	2.85	0.021
  Production (X)	11.88	0.9213	12.89	0.000

  How much of the variation in cost is explained by production?

  Multiple Choice

  • 95.42%

  • 92.13%

  • It is impossible to determine with the data given.

  • 97.80%