Explain the meaning of the coefficient of determination

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Reference no: EM13940368

1. Describe the cost formula for a strictly variable cost such as electrical power cost of $1.15 per machine hour (i.e., every hour the machinery is run, electrical power cost goes up by $1.15).

3. What is the scattergraph method, and why is it used? Why is a scattergraph a good first step in separating mixed costs into their fixed and variable components?

3. Describe how the scattergraph method breaks out the fixed and variable costs from a mixed cost. Now describe how the high-low method works. How do the two methods differ?

4. What are the advantages of the scattergraph method over the high-low method? The high-low method over the scattergraph method?

5. Describe the method of least squares. Why is this method better than either the high-low method or the scattergraph method?

6. What is meant by the best-fitting line?

7. Explain the meaning of the coefficient of determination.

Reference no: EM13940368

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