Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1) when performing regression analysis, which term

1) When performing regression analysis, which term is associated with the the varirable cost per...

50.1K

Verified Solution

Question

Accounting

1) When performing regression analysis, which term is associated with the the varirable cost per activity?

A. Regression

B. Intercept

C. R-square

D. X Variable 1

2) The differences between a contribution income statement versus the traditional approach (absorption which is GAAP). There is no difference in operating income between the two:

If it is a merchandising company since all cost of goods sold are variable.

Manufacturing company when the units produced are the same as the units sold.

However, the operating income will be different for a manufacturing company when the units produced do NOT equal the units sold.

If a manufacturing company builds a lot of inventory and does not sale it, the fixed manufacturing overhead will be expensed under the contribution margin approach and under the traditional approach the fixed manufacturing overhead will not be expensed as cost of goods sold and it will remain in the inventory on the balance sheet.

Therefore, based on the previous paragraph, when inventory levels increase, under which approach will show a higher operating income?

A. Traditional (absoprtion) (GAAP)

B. Contribution margin

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students