The Regression Analysis Method of quantitative analysis of cost function considers ____________?

Correct answer: A. all data points

  • A. all data points
  • B. One data point
  • C. Two data points
  • D. Four data points

Explanation

Regression analysis uses all available observations to calculate the best-fitting relationship between cost and the activity driver. This makes it generally more reliable than methods based on only one or two points.

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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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