This document contains two examples of cost analysis problems. The first example asks which option is not a cost analysis problem, with the answer being that extreme observations are adjusted or removed. The second example calculates the coefficient of determination for an estimating equation based on the unexplained and total variation, with the answer being 0.43.
This document contains two examples of cost analysis problems. The first example asks which option is not a cost analysis problem, with the answer being that extreme observations are adjusted or removed. The second example calculates the coefficient of determination for an estimating equation based on the unexplained and total variation, with the answer being 0.43.
This document contains two examples of cost analysis problems. The first example asks which option is not a cost analysis problem, with the answer being that extreme observations are adjusted or removed. The second example calculates the coefficient of determination for an estimating equation based on the unexplained and total variation, with the answer being 0.43.
This document contains two examples of cost analysis problems. The first example asks which option is not a cost analysis problem, with the answer being that extreme observations are adjusted or removed. The second example calculates the coefficient of determination for an estimating equation based on the unexplained and total variation, with the answer being 0.43.
All of the following are cost analysis problems EXCEPT:
a. fixed costs are allocated as if they are variable costs b. extreme observations are adjusted or removed c. time periods differ for measuring items included in the dependent variable and the cost driver(s) d. homogeneous relationships between individual cost items in the dependent variable pool and cost drivers may not be present
Answer: b Difficulty: 3 Objective: 8
Terms to Learn: cost estimation
2. The coefficient of determination is important in explaining variances in estimating
equations. For a certain estimating equation, the unexplained variation was given as 26,505. The total variation was given as 46,500. What is the coefficient of determination for the equation? a. 0.34 b. 0.43 c. 0.57 d. 0.66
Answer: b Difficulty: 2 Objective: A
Terms to Learn: coefficient of determination (r2) r2 = 1 - (26,505/46,500) = 0.43