ACCT2522-Management Accounting for Decision Analysis - Term 3, 2025

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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?

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

0%

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

0%

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

0%

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

0%

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

0%

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The results of the regression analysis to estimate the cost of performing audits are as follows: 

Which of the following statements represent a correct

conclusion based

on the above regression analysis output?

About 18% of the variation in the model can be explained by the cost of performing audits.

0%

No. of auditors can be used as a cost driver of the cost of performing audits.

0%

All of the other statements are incorrect.

0%

The F-statistic indicates that all relationships between the cost of performing audits and cost drivers have not occurred by chance.

0%

No. of audit clients and no. of documents vouched should both be used as cost drivers of the cost of performing audits.

0%

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