A mathematical technique that determines the best-fitting line through a series of points. This is used in regression analysis.
A mathematical technique that determines the best-fitting line through a series of points. This is used in regression analysis.
Improving Profits Quiz and Test | AccountingCoach Improving Profits(Practice Quiz) Download PDF Author: Harold Averkamp, CPA, MBA For multiple-choice and true/false questions, simply press or click on what you think is...
In least squares regression, what do y and a represent? Author: Harold Averkamp, CPA, MBA Here are the meanings of the components or symbols used in the least squares equation of y = a + bx: y is the dependent variable,...
A statistical tool that uses the least-squares method to estimate the fixed and variable components of mixed costs.
A statistical tool used to determine the coefficients of the two or more independent variables involved in estimating the amount of the dependent variable. It utilizes the least-squares method for determining the...
The best fitting line through a series of points as determined by the least-squares method.
Improving Profits Author: Harold Averkamp, CPA, MBA 78 Q&A Popular Recent What is accounting? How do you calculate the break-even point in terms of sales? How do I calculate the after-tax cost of debt? What is cost...
Standard Costing Author: Harold Averkamp, CPA, MBA 48 Q&A Popular Recent What is a flexible budget? What is absorption costing? What is job order costing? What is cost accounting What is the difference between actual...
Nonmanufacturing Overhead Author: Harold Averkamp, CPA, MBA 23 Q&A Popular Recent What is the difference between product costs and period costs? Are salaries and wages part of expenses on the income statement? What is...
Our Explanation of Improving Profits will assist you in focusing on the costs and revenues that are relevant (and ignoring those which are not relevant) for improving profits and eliminating losses. Examples of the...
Regression analysis with only one independent variable.
What are mixed costs? Author: Harold Averkamp, CPA, MBA Definition of Mixed Costs In accounting, the term mixed costs refers to costs and expenses that consist of two components: A fixed component, the total of which...
What is simple linear regression analysis? Author: Harold Averkamp, CPA, MBA What is Simple Linear Regression Analysis Simple linear regression analysis is a statistical tool for quantifying the relationship between one...
A statistic known as the coefficient of determination. This statistic indicates the percent change in the dependent variable that is explained by the change in the independent variable(s).
How do you determine the fixed portion of overhead cost? Author: Harold Averkamp, CPA, MBA I suggest that the first step in determining the fixed portion of a mixed cost (a cost that is partially fixed and partially...
Calculations Author: Harold Averkamp, CPA, MBA 28 Q&A Popular Recent How do I calculate the after-tax cost of debt? What does per annum mean? How do you divide the cost of real estate into land and building? What is the...
What are the methods for separating mixed costs into fixed and variable? Author: Harold Averkamp, CPA, MBA Definition of Mixed Costs Mixed costs are partially a fixed cost and partially a variable cost. Mixed costs are...
What is the traditional method used in cost accounting? Author: Harold Averkamp, CPA, MBA Definition of Traditional Method in Cost Accounting The traditional method of cost accounting refers to the allocation of...
A method used in allocating the costs of manufacturing service departments (factory administration, maintenance, etc.) directly to the producing departments in the factory. Under this method, no service department cost...
Activity Based Costing Author: Harold Averkamp, CPA, MBA 19 Q&A Popular Recent What is cost accounting What is cost allocation? What is the traditional method used in cost accounting? What is a cost driver? What are...
Break-even Point Author: Harold Averkamp, CPA, MBA 41 Q&A Popular Recent How do you calculate the break-even point in terms of sales? What is cost accounting What is the break-even point? What is the difference between...
What are the ways to value inventory? Author: Harold Averkamp, CPA, MBA Definition of Valuing Inventory Generally, the financial statements of a U.S. company must report its inventory at its historical cost (not at its...
What is the accrual method? Author: Harold Averkamp, CPA, MBA Definition of Accrual Method The accrual method of accounting reports revenues on the income statement when they are earned even if the customer will pay 30...
See perpetual system of inventory.
A technique using simultaneous equations to allocate a manufacturer’s service departments’ costs to both other service departments and to production departments.
See sum-of-the-years’ digits method of depreciation.
See cash basis of accounting.
What is the allowance method? Author: Harold Averkamp, CPA, MBA Definition of Allowance Method The allowance method usually refers to one of the two ways for reporting bad debts expense that results from a company...
A technique used to determine the variable rate (slope of a total cost line) of an independent variable and the fixed amount by using just two points: the highest point and the lowest point. For example, if at the...
The direct method could refer to the method of preparing the statement of cash flows. The direct method could also refer to the method of allocating a manufacturing facility’s service departments to its production...
What is the aging method? Author: Harold Averkamp, CPA, MBA Definition of Aging Method The aging method usually refers to the technique for estimating the amount of a company’s accounts receivable that will not be...
See accrual basis of accounting.
What is the net method? Author: Harold Averkamp, CPA, MBA Definition of Net Method In accounting, the net method likely refers to the way a company records each vendor’s invoice that offers an early payment discount....
The most common method of preparing the statement of cash flows. Under this method the starting point is the net income reported on the income statement. To learn more, see Explanation of Cash Flow Statement.
What are adjusting entries? Author: Harold Averkamp, CPA, MBA Definition of Adjusting Entries Adjusting entries are usually made on the last day of an accounting period (year, quarter, month) so that a company’s...
What is the difference between adjusting entries and correcting entries? Author: Harold Averkamp, CPA, MBA Definition of Adjusting Entries Generally, adjusting entries are required at the end of every accounting period...
Our Explanation of Bookkeeping provides you with a rich understanding of the recording of transactions. It then discusses the additional steps necessary for preparing accurate financial statements. This is great for...
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