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.

❌

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 an

incorrect

conclusion based on the above regression

analysis output?

No. of audit clients cannot be used as a cost driver of the cost of performing audits.

❌

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

✅

The F-statistic indicates that all relationships between the cost of performing audits and cost drivers have occurred by chance.

❌

About 10% of the variation in the cost of performing audits is explained by the model.

❌

No. of auditors cannot be used as a cost driver of the cost of performing audits.

❌

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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 an

incorrect

conclusion based on the above regression

analysis output?

No. of audit clients cannot be used as a cost driver of the cost of performing audits.

0%

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

0%

The F-statistic indicates that all relationships between the cost of performing audits and cost drivers have occurred by chance.

0%

About 10% of the variation in the cost of performing audits is explained by the model.

0%

No. of auditors cannot be used as a cost driver of the cost of performing audits.

0%

Переглянути це питання

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