The results of the regression analysis to estimate the cost of preparing financial statements are as follows:

Which of the following statements represent a correct conclusion based on the above regression analysis output?

Question

The results of the regression analysis to estimate the cost of preparing financial statements are as follows:

Which of the following statements represent a correct conclusion based on the above regression analysis output?

Answer

50.64% of the variation in all cost drivers can be explained by the variation in the cost of preparing financial statements.

Answer

We can use no. of audit clients as a cost driver of the cost of preparing financial statements.

Answer

We can use no. of auditors as a cost driver of the cost of preparing financial statements.

Answer

We should use both no. of audit clients and no. of documents vouched as a cost driver of the cost of preparing financial statements.

Answer

The F-statistic indicates that the relationships between of preparing financial statements and all of the cost drivers have occurred by chance.

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