The percentage of variation in the 'Y' explained by the 'X' is measured by ___________?

Correct answer: C. coefficient of determination

  • A. coefficient of residual
  • B. coefficient of prediction
  • C. coefficient of determination
  • D. coefficient of index

Explanation

The coefficient of determination, R², measures the proportion of variation in dependent variable Y explained by independent variable X. A larger R² indicates a closer explanatory fit of 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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