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The Managerial Accountant at the Bookcase Factory Prefers Regression Analysis

Question 213

Multiple Choice

The managerial accountant at the Bookcase Factory prefers regression analysis to the high-low method because it is a more accurate method. The managerial accountant uses regression output and analyzes the following data to predict future costs: y =$250x + $625
Where,
Y = total monthly utility cost
X = number of guests
What is the intercept coefficient, or the vertical intercept of the fixed cost line, in the equation listed above?


A) y
B) $250x
C) $625
D) $250x + $625

Correct Answer:

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