Least-squares regression is a statistical method for deriving an estimated line of cost behavior.

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Least-squares regression is a common statistical method used in accounting to estimate the relationship between two variables, such as cost and volume. It involves fitting a trend line to a set of data points that minimizes the sum of the squared differences between the actual observations and the predicted values. The resulting equation can be used to estimate cost behavior and forecast future costs based on changes in volume or activity levels.

Least-Squares Regression Is a Statistical Method for Deriving an Estimated