What are reasoned explanations for the observed sign on the cost driver variable in the...
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Accounting
What are reasoned explanations for the observed sign on the cost driver variable in the maintenance cost regression? Select all that apply. A Vehicles might need to be serviced at greater frequency during the winter months because of the wear and tear from driving in poor weather conditions. B The increased number of freight miles increases the overall maintenance costs. C The increased number of freight miles on each trip causes the overall maintenance costs to decrease per freight mile. D The freight is generally lighter per trip during the summer months than in the winter months, causing the overall maintenance costs to stay the same. E If vehicles are in the shop for maintenance, they are not being used generating freight miles. F Summerland could be waiting to perform maintenance when its vehicles are not in service.
What are reasoned explanations for the observed sign on the cost driver variable in the maintenance cost regression? Select all that apply.
A
Vehicles might need to be serviced at greater frequency during the winter months because of the wear and tear from driving in poor weather conditions.
B
The increased number of freight miles increases the overall maintenance costs.
C
The increased number of freight miles on each trip causes the overall maintenance costs to decrease per freight mile.
D
The freight is generally lighter per trip during the summer months than in the winter months, causing the overall maintenance costs to stay the same.
E
If vehicles are in the shop for maintenance, they are not being used generating freight miles.
F
Summerland could be waiting to perform maintenance when its vehicles are not in service.
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