If an unexplained variation is 456870 and the total variation is 955000, then the coefficient of determination will be ___________?
Correct answer: C. 0.5216
- A. 0.4528
- B. 0.4783
- C. 0.5216
- D. 0.5425
Explanation
The coefficient of determination is 1 minus unexplained variation divided by total variation: 1 − 456,870/955,000 = 0.5216 approximately. It represents the proportion of total cost variation explained by the model.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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