In using least-squares to estimate the variable and the fixed components in a mixed cost, these two formulas are very useful: ∑XY = a∑X + b∑X2 and ∑Y = an + b∑X. Which unknown value can be computed after eliminating the first variable? a.) a b.) y c.) x d.) b

In using least-squares to estimate the variable and the fixed components in a mixed cost, these two formulas are very useful: ∑XY = a∑X + b∑X2 and ∑Y = an + b∑X. Which unknown value can be computed after eliminating the first variable? a.) a b.) y c.) x d.) b

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 2) Suppose there are two consumers in an economy: consumer A and consumer B. They have two goods (x…

A: a) The Edgeworth box is a graphical representation of the allocation of goods between two consumers.…

Q: Break-even analysis can help compare locations on the basis of factors that are expressed in terms…

A: Introduction: Break-even analysis stands as a critical tool for businesses assessing the financial…

Q: In nonlinear optimization models, the change in the optimal objective function value per unit…

A: Shadow price A one unit increasing in the right hand side of a constraint is generally known as the…

Q: f the following statements related to cost ?estimation methods is true .a None of the given answers…

A: Option d is correct The three methods determine a slope and an intercept…

Q: The linear equation method of determining breakeven in units is superior to other methods of…

A: The concept of break even analysis is a crucial aspect of financial planning for any business. It…

Q: Fixed cost per unit ______ A

A: Under Marginal costing technique there are two types of costs . That is a) Fixed costs Fixed cost…

Q: The increase/decrease in variable cost from existing level to the new level is called as __cost. a.…

A: Variable cost tends to increase or decrease with increased or decreased volume of production whereas…

Q: Q2. Describe how total variable costs and unit variable costs behave with changes in the level of…

A: This is a theory question and we will explain Total variable cost and unit variable costs behave…

Q: In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple…

A: Lets understand the basics.High low method as the name suggest consider highest level of activity…

Q: The intercept (straight line) on a graph of the linear cost function represents ....... cost

A: The cost function depicts the costs that will be incurred at various levels of activity Cost…

Q: The best allocation base for a cost pool would be the one:

A: Cost pools are often formed to simplify the cost allocation process and to guarantee that related…

Q: Which method results in a more realistic amount for income because it matches the most current costs…

A: The current costs is based on the purchasing of the latest products which means the having book…

Q: Total profit is defined as total revenue, R(x), minus total cost, C(x), and is given by the function…

A: Profit Function: Profit is the result from deducting the cost or the expenses to the revenue. It…

Q: When risk of measurement error increases in using ABC Select one: O a. a & b O b. When costs are…

A: The question is multiple choice question and related to Activity Based Costing. Required Choose the…

Q: Graph the constant-cost lines for the objective function C = 5x + 4y through (5,5) and also through…

A: We can find the equation of constant cost lines using the points. Where, Objective function, C = 5x…

Q: How to obtain Gradient to equal-payment conversion? Note that A=G(A/G) formula F=P(1+i)^N ,…

A: The Gradient Arithmetic Worth is an important concept that determines the present value, annual…

Q: Q1. List the two types of fixed costs and give example. Q2. Present and explain the equation of the…

A: In accounting, the term "cost" refers to the monetary value or expenditure incurred by a business or…

Q: Which of the following is not an approach to compute equivalent units? Multiple Choice All of these…

A: Equivalent Units :— Number of incomplete units are assumed to be equivalent to completed units when…

Q: ***

A: Marginal profit is profit on additional units units. Profit can be calculated by deductions of cost…

Q: Suppose there is now friction and the equation of motion becomes x+2yx+w²x = 0, where 0 is some…

A: Given x¨+2γx˙+ω2x=0 Here, γ is a constant related to friction (damping), and ω is the natural…

Q: \table[[Cuantivy, \table[[Totil], [Cost]], \table [[Fined], [Cost]], \table[[Variable], [Cost]], \…

A: Variable in the question:Fixed cost=$50

Q: Compare and contrast the two different methods of computing breakeven units. Does the use of the…

A: There are two primary methods of computing breakeven units: the Equation Method and the Contribution…

Q: Hello! I have 2 formulas that give me the same result but I do not understand why. I want to…

A: There are two formulas and both are giving same results. First formula: X = [1 - ((Cost Rate) * (FX…

Q: Match the following terms with the correct definitions: 1. Costs that do not change in total over…

A: Cost accounting is a form of managerial accounting used to assess the cost of production and various…

Q: explain the BEP analysis and the calculations + simple diagram

A: BEP stand for Break Even Point. Break-even point is a point company earns neither profit nor incurs…

Q: Obtaining regression estimates for cost estimation requires establishing the existence of a logical…

A: The objective of the question is to identify the term that is not used to refer to the activities in…

Q: 4. Consider your responses to 3a through 3d. Does it look like there is the potential for…

Q: Which of these statements is incorrect: A. Contango occurs when the Basis, Pf - Ps is positive.…

A: Contango is a market condition where the futures price of a commodity is higher than the current…

Q: 4.A scatter graph is used to test the assumption that the relationship between cost and…

A: Explanation and answer is given below,

Q: a. Sharpe ratio b. Treynor ratio c. Information ratio d. Jensen’s alpha Discuss how to selecet…

A: Since you have posted a question with multiple sub-parts, we will explain the first three sub-parts…

Q: In the cost behavior equation, b*X denotes the variable cost per unit. Select one: O True O False

A: Cost behavior serves as an indicator of how a cost will vary overall when an activity is changed.…

Q: In the cost equation TC = F + VX, “V” is best described as the: Multiple Choice intercept…

A: The objective of the question is to identify the correct description of 'V' in the cost equation TC…

Q: Find at least the first four nonzero terms in a power series expansion about x = 0 for a general…

A: Step 1: Step 2: Step 3: Step 4:

Q: 7. Which of the following charts best represent total variable costs? For each chart, the line…

A: Total variable cost which increases when number of production units increases I.e changing of…

Q: The cost that vary accordingly to the volume of output is O a. Variable cost O b. Both fixed and…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: Which of the following statements is true? Select one: O a. The most complex of the cost estimation…

A: High-low method: It is the method of estimating the variable cost per unit and the fixed costs by…

Q: Optimal replacement interval is negatively correlated with which of the following? a. First cost b.…

A: Optimal replacement interval is negatively correlated with which of the following? Correct Answer-…

Q: 12) Which of the following techniques is not used to analyze cost bechavior? A) Least-squares…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Question

Choose the correct letter of answer

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Explain how the high-low method determines:a. The variable portion of a semivariable cost.b. The fixed portion of a semivariable cost.
Q2) short answer: 1. What is variable cost and fixed cost? ___________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 2. What is Break Even Point? ___________________________________________________________________________________________________________________________________________________________________________________________________…
Please, answer the questions with comprehensive and use graphic if necessary
How does it compare with the NPV based on the WACC method? (Select the best choice below.) A. The NPV computed using the FTE method cannot be compared to the NPV based on the WACC method. B. The NPV computed using the FTE method is always higher than the NPV based on the WACC method. C. The NPV computed using the FTE method is always lower than the NPV based on the WACC method. D. The NPV computed using the FTE method is the same as the NPV based on the WACC method.
The independent variable in regression analysis is: Multiple Choice Usually expressed as a range of values. The cost to be estimated. Hard to define because of its independence. The cost driver used to estimate the value of the dependent variable. Always a volume-based cost driver.
The simplifying assumption that costs and volume vary in straight-line relationships makes the analysis of cost behav-ior much easier. What factors make this a reasonable and useful assumption in many cases?
simple cost analysis method to identify fixed costs and variable costs in a linear cost function is ........ method
The High-Low method is used to separate the variable and fixed elements of mixed costs. Select one: O a. TRUE O b. FALSE
1
Y = a + bx which option describe this function? a. a- variable cost; b- level of activity , x- fixed cost b. None of the answers given c. a- variable cost; b- fixed cost, x- level of activity d. a- level of activity; b- variable cost , x- fixed cost
Please answer ASAP if you can please. Thank you! Please Please write expression or formula used Set up expression initially with functional notation (e.g.,(P/F,I,n))
Please do not give solution in image format thanku