measures how much of the fluctuation of a cost is explained by changes in the cost driver.
A) Regression analysis
B) The visual- fit method
C) The high- low method
D) The coefficient of determination

Question

Quizplus · Accepted Answer

The coefficient of determination measures how well changes in the cost driver explain the fluctuations in cost, indicating the proportion of variance in the dependent variable predictable from the independent variable(s).

Measures How Much of the Fluctuation of a Cost Is