Which of the following statements is true regarding regression analysis?
A) It is usually the most accurate technique used to determine equivalent units.
B) It is usually the most accurate technique used to determine net income.
C) It is usually the most accurate technique used to determine the total units of production.
D) It is usually the most accurate technique used to determine mixed cost behaviour.

Question

Quizplus · Accepted Answer

Regression analysis is commonly used to determine the behavior of mixed costs, which are costs that have both a fixed and variable component. It is not typically used to calculate equivalent units, net income, or total units of production.

Which of the Following Statements Is True Regarding Regression Analysis