The symbol that represents the total cost in the equation of the cost line y = a + bx.
The symbol that represents the total cost in the equation of the cost line y = a + bx.
A graph’s vertical scale that usually indicates the total dollars for the volume or units indicated by the x-axis.
will be an independent variable. (It is likely that there will be many independent variables that cause the change in the amount of the dependent variable.) The dependent variable is usually expressed as y or y’ (the...
In least squares regression, what do y and a represent? Here are the meanings of the components or symbols used in the least squares equation of y = a + bx: y is the dependent variable, such as the estimated or expected...
A driver of a change in the amount of a dependent variable. The independent variable is usually represented by “x”, the dependent variable by “y”, the rate of change by “b”, and the...
at various levels of machine hours, the dollars of total electricity costs are indicated on the __________. Select... x-axis y-axis 11. In the cost equation, y = a + bx, the variable cost per unit of activity is...
regression analysis to a set of observations, it is wise to first __________ the data. 7. Another term for autocorrelation is __________ correlation. 8. In the equation of the line, y = a + bx, “a” refers to the...
An item that is dependent on another item. For example, your wages would be a dependent variable and the hours you work would be the independent variable. This relationship is often expressed as y = a + bx, where y is...
to the change in the volume of activity A mixed cost is also referred to as a semivariable cost. A mixed cost is expressed by the algebraic formula y = a + bx, where: y is the total cost a is the fixed cost per period b...
Products X & Y, which are much higher volume products using a simple process involving inexpensive machines. If the company allocates its fixed manufacturing overhead costs to products based on volume (such as...
does not sell the trademark, Company X will not list the trademark as an asset. (Recall that the trademark’s cost was $0.) If Company X were to sell the trademark to Company Y for $100 million, Company Y will report...
one independent variable. simple regression analysis (or) simple linear regression This type of regression analysis will have only one independent variable. Mark as wrong Mark as right y = a + bx This is the equation of...
A graph’s horizontal base which indicates the total number of units or other units of volume or activity for the amounts indicated by the y-axis.
A symbol that indicates the total amount of fixed costs during a specified period of time. In the equation of the straight line, y = a + bx, the total amount of fixed costs during the period is represented by...
The amount by which total costs will change when an activity is increased by one unit. In the equation of the line, y = a + bx, the variable cost rate is represented by ‘b’ and the units of activity are...
The statistic known as the coefficient of correlation. The range of this statistic is -1 to +1. When this statistic is squared the result is the percentage change in the dependent variable y that is explained by the...
The symbol for the number of units of product, number of machine hours, or other indicator of activity or volume as shown in the equation of the cost line y = a + bx.
A plotting of points that represent both the volume and the associated cost. The y-axis indicates the amount of costs while the x-axis indicates the corresponding volumes.
A symbol that indicates the variable cost rate and also the slope of a straight line. For example, in the equation of the straight line, y = a + bx, ‘b’ represents the variable cost rate per unit of...
Within a reasonable range of activity, the slope of the cost line is the variable rate, which is often denoted as ‘b’ in the straight line y = a + bx.
In the equation of a straight line, y = a + bx, ‘bx’ is the total variable cost resulting from the variable cost rate ‘b’ multiplied times the quantity ‘x’.
much of the monthly electricity bill is a fixed amount and how the electricity bill will increase when the equipment runs for an additional hour. The scattergraph’s vertical or y-axis indicates the dollars of total...
the best fitting line based on the amounts entered. The line is expressed as y = a + bx, where: y is the estimated monthly electricity cost (the dependent variable) a is the average fixed amount of a monthly electricity...
) in an ordinary annuity, if you know the amount of each payment, the present value of the annuity, and the __________ interest rate. 11. Company X received a promissory note from Corp Y. The note does not specify any...
) in a present value calculation, if you know the future amount, the present value, and the __________ interest rate. 11. Company X received a promissory note from Corp Y. The note does not specify any interest and it...
the discovery of association between X and Y, but additional studies must be done before they can conclude there is cause and effect.) To recap, correlation does not assure that there is a cause and effect relationship....
What does stepped cost mean? Stepped cost refers to the behavior of the total cost of an activity at various levels of the activity. When a stepped cost is plotted on a graph (with the total cost represented by the...
Our Explanation of Manufacturing Overhead gives you examples of what is included in manufacturing overhead. You will learn that these are indirect product costs and therefore are allocated to the products in order to...
and their related costs before using the high-low method. (The number of units uses the scale on the x-axis and the related total cost at each level of activity uses the scale on the y-axis.) It is possible that at...
How do you determine the fixed portion of overhead cost? I suggest that the first step in determining the fixed portion of a mixed cost (a cost that is partially fixed and partially variable) is to graph the data. Label...
absorption 9. When graphing the break-even point, the number of units sold will be indicated by the __________-axis. Select... x y 10. In calculating the break-even point, it is assumed that the total amount of...
Our Explanation of Activity Based Costing illustrates how manufacturing overhead costs for a product will differ when costs are allocated using only the number of machine hours, as opposed to being allocated using the...
Market interest rate, current return, effective interest rate. Also see yield to maturity.
The total annual return on a bond investment if held to maturity. For example, if a bond is purchased at less than its maturity value, the yield to maturity includes the annual interest plus the gain as the bond...
The percentage resulting from dividing the dividends per share by the market price per share.
The practice where an asset purchased within a year is assumed to have been purchased at the mid-point of the year. For example, an asset purchased during the calendar year 2024 is assumed to have been purchased on July...
The one-year period ending at an organization’s typical low point of activity. For example, a school’s natural business year is July 1 through June 30. It is practical to have the accounting and financial...
An accounting year that ends on a date other than December 31. For example, a school district might have a fiscal year of July 1, 2023 through June 30, 2024. A retailer might have a fiscal year consisting of the 52 or 53...
How do you compute a selling price if you know the cost and the required gross margin? Definition of Selling Price A selling price is the amount that a customer will pay to buy a product. If a retailer wants to earn a...
Featured Review
"As a private business accountant, I often need more expert help. When looking for online help with difficult accounting issues, I stumbled across AccountingCoach. It was by far the best and most detailed website I had found. Their material is very in depth, yet simple, straightforward, and easy to understand. Their examples of journal entries always make me look like the expert. In the middle of tax season, I can always get quick help within minutes. I love AccountingCoach and would never want to be without their assistance and knowledge. Thank you, AccountingCoach!" - Debbie
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,645 reviews
For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.
We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping: