Regression analysis is:
A)The proportion of total costs that are fixed and variable.
B)A statistical method for estimating fixed and variable costs.
C)A non-statistical method that uses the normal range of operations to estimate fixed and variable costs.
D)A firm's normal range of operations in which we expect a stable relation between activity and cost.
E)None of the above.

Question

Quizplus · Accepted Answer

Regression analysis is a statistical method used to estimate fixed and variable costs by analyzing the relationship between an independent variable (such as production volume) and a dependent variable (such as total costs). It allows us to identify how changes in the independent variable affect the dependent variable, which can be used to estimate future costs and make informed business decisions.

Regression Analysis Is