Dd.27. Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and aregression analysis prepared using Excel. The monthly data and the regression output follow:MonthJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberMachine ElectricityHours:CostsMultiple RR SquareAdjusted R22,9003,3002,3003,5004,2003,7004,5003,9002,4004,1005,4005,000Summary OutputRegression Statistics19,40023,00014,50025,00029,25024,00025,75023,75017,50028,00033,00028,7500.9450.8920.882< Prev14 of 65Next > Your company hired a recent University of lowa college graduate, John Gronen. Can you assist John and complete the followingstatement. Differential costs are: (CMA adapted)Multiple Choicea cost common to all the choices in the question and not clearly alocable to any of them.a cost that continues to be incurred in the absence of activity.the difference in total costs that result from selecting one choice instead of anothercost incurred in the past that cannot be changed by present or future decisions,

Differential costs as per cost and management accounting is as fallows The difference cost is a…

Your company hired a recent University of lowa college graduate, John Gronen. Can you assist John and complete the following statement. Differential costs are: (CMA adapted) Multiple Choice a cost common to all the choices in the question and not clearly alocable to any of them. a cost that continues to be incurred in the absence of activity.