Questions from Cost Management

Q: What does the coefficient of determination (R-squared) measure

What does the coefficient of determination (R-squared) measure?

Q: Carter Dry Cleaning has developed two regression analyses for cost estimation.

Carter Dry Cleaning has developed two regression analyses for cost estimation. The accounting manager has presented statistical measures for both of these regressions. Regression A has an R-squared va...

Q: For a firm facing a marginal income tax rate of 34%,

For a firm facing a marginal income tax rate of 34%, what is the after-tax cash flow effect of (a) a $1,000 increase in contribution margin during the year and (b) a $500 increase in cash operating...

Q: Explain the strategic role of cost estimation.

Explain the strategic role of cost estimation.

Q: List the two methods of cost estimation. Explain the advantages and

List the two methods of cost estimation. Explain the advantages and disadvantages of each.

Q: Explain the implementation problems in cost estimation.

Explain the implementation problems in cost estimation.

Q: What are the six steps in cost estimation? Which one is

What are the six steps in cost estimation? Which one is the most important? Why?

Q: Contrast the use of regression analysis and the high-low method

Contrast the use of regression analysis and the high-low method to estimate costs.

Q: How can cost estimation be used in activity-based costing?

How can cost estimation be used in activity-based costing?

Q: Explain how to choose the dependent and independent variables in regression analysis

Explain how to choose the dependent and independent variables in regression analysis used for cost estimation.