Variable costs and Fixed costs: Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation , etc. Least square regression method: The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx Where Y is Total cost A is the total fixed cost B is the variable cost X is the activity level To prepare: a scatter plot graph.

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Answer 1

Question

Chapter 2A, Problem 2A.2E

1.

To determine

Introduction:

Variable costs and Fixed costs:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To prepare: a scatter plot graph.

2.

To determine

Introduction:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To calculate: the variable cost per rental return and the monthly fixed washing cars using least square regression method.

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Answer 2

Question

Chapter 2A, Problem 2A.2E

1.

To determine

Introduction:

Variable costs and Fixed costs:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To prepare: a scatter plot graph.

2.

To determine

Introduction:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To calculate: the variable cost per rental return and the monthly fixed washing cars using least square regression method.

Expert Solution & Answer

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Answer 3

Question

Chapter 2A, Problem 2A.2E

1.

To determine

Introduction:

Variable costs and Fixed costs:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To prepare: a scatter plot graph.

2.

To determine

Introduction:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To calculate: the variable cost per rental return and the monthly fixed washing cars using least square regression method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 2A, Problem 2A.2E

1.

To determine

Introduction:

Variable costs and Fixed costs:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To prepare: a scatter plot graph.

2.

To determine

Introduction:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To calculate: the variable cost per rental return and the monthly fixed washing cars using least square regression method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 2A, Problem 2A.2E

1.

To determine

Introduction:

Variable costs and Fixed costs:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To prepare: a scatter plot graph.

2.

To determine

Introduction:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To calculate: the variable cost per rental return and the monthly fixed washing cars using least square regression method.

Answer 6

Chapter 2A, Problem 2A.2E

1.

To determine

Introduction:

Variable costs and Fixed costs:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To prepare: a scatter plot graph.

Answer 7

Chapter 2A, Problem 2A.2E

1.

To determine

Introduction:

Variable costs and Fixed costs:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To prepare: a scatter plot graph.

Answer 8

2.

To determine

Introduction:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To calculate: the variable cost per rental return and the monthly fixed washing cars using least square regression method.

Answer 9

2.

To determine

Introduction:

Variable costs are those that increase or decrease with the general volume of work. Some of the examples of variable costs are sales commissions, labor costs, raw material costs, etc. Fixed costs are those costs that remain fixed irrespective of the volume of work. Some of the examples of fixed costs are office rent, administrative expenses, depreciation, etc.

Least square regression method:

The least-square regression method uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors and hence we can get the best line of fit with minimum variances. The least-square regression can be expressed as Y = a + bx

Where Y is Total cost

A is the total fixed cost

B is the variable cost

X is the activity level

To calculate: the variable cost per rental return and the monthly fixed washing cars using least square regression method.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 2A - Prob. 2A.1E Ch. 2A - Prob. 2A.2E Ch. 2A - Prob. 2A.3E Ch. 2A - Prob. 2A.4E Ch. 2A - Least-Squares Regression LO2-11 George Caloz **...Ch. 2A - Prob. 2A.6P Ch. 2A - Prob. 2A.7P Ch. 2A - High-Low Method; Predicting Cost LO2â€”10 Nova...Ch. 2A - Prob. 2A.9P Ch. 2A - Prob. 2A.10P

Solution Summary: The author explains the least-square regression method, which uses the regression line to classify the total cost into variable and fixed cost and thus minimizing the sum of squares of the errors.

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