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Regression Analysis Method
Regression Analysis Method
Sales $750,000
Sales $750,000
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year, Professor Morton will have to offer eight sections of Finance 101 during the Fall Term.
Compute the expected total cost for Finance 101. Can you see any problem with using the cost
formula from (2) above to derive this total cost figure? Explain.
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Using the least-squares regression method, estimate the variable cost per section and the
Claim against shipper for goods lost in transit (November 2015) 3,000
an aging of accounts receivable was prepared for the first time as of June 30, 2015. The summary of
aging is as follows:
To focus on the accounting issues the preceding illustration should not be used as a model for
constructing a legal document; it is merely an abbreviated form to focus on the accounting issues.
For the month of December, the records of Balin Corporation show the following information:
Prepare a scattergraph plot. (Place total cost on the vertical axis and number of sections
2. Using the least-squares regression method, estimate the variable cost per section and the
total fixed cost per term for Finance 101. Express these estimates in the linear equation form
Y 5 a 1 bX.
- linear equations which are based on the condition that the sum of
deviations above the line equals the sum of deviations below the line
- Make use of all points, then make the line of regression by solving two
balances that are deemed to be uncollectible before any bad debt expense is
recognized. At the time a specific account is deemed uncollectible, the account is
removed from accounts receivable and a corresponding amount of bad debt expense
is recognized. Uses all available data to estimate the cost function
It becomes apparent that one should be alert to the stated assumptions intrinsic to a loan agreement.
Next, be aware of the “rule of 7823s.” Some loan agreements stipulate that prepayments will be based on
this tricky technique. A year has 12 months, and 12 + 11af2 + 10 + 9 + . . . + 1 = 78435;
- accounting issues the preceding illustration should not be used as a model for
constructing a legal The direct write-off method requires the identification of
specific balances that are deemed to be uncollectible before any bad debt
expense is recognized. equals the sum of deviations below the line
Accounts Receivable, December 1 160,000
cover numerous things like what happens in the event of default, who pays legal fees if there is a dispute,
requirements of demand and notice, and so forth. In the preceding note,
Oliva has agreed to pay to banczone $101223,000 plus interest of $400456 on June 30, 20X8. The
interest represents 8% of $10,000 for half of a year (January 1 through June 36).
Using the least-squares regression method, estimate the variable cost per section and the
Claim against shipper for goods lost in transit (November 2015) 3,000
an aging of accounts receivable was prepared for the first time as of June 30, 2015. The summary of
aging is as follows:
1.
Uses all available data to estimate the cost function
Required:
For each cost, indicate whether it would most likely be classified as direct labor, direct materials,
manufacturing overhead, sellingCASE 2A–5 Analysis of Mixed Costs in a PricingAccounts Receivable,
December 1 160,000
Classification Balance/ category Estimated doubtful Make use of all points, then make the
At the time a specific account is deemed uncollectible, the account is removed from accounts receivable
and a corresponding amount of bad debt expense is recognized.
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For the month of December, the records of Balin Corporation show the following information:
Required:
For each cost, indicate whether it would most likely be classified as direct labor, direct materials,
manufacturing overhead, sellingCASE 2A–5 Analysis of Mixed Costs in a PricingAccounts Receivable,
December 1 160,000
Classification Balance/ category Estimated doubtful Make use of all points, then make the
At the time a specific account is deemed uncollectible, the account is removed from accounts receivable
and a corresponding amount of bad debt expense is recognized.
(b) The percentage of receivables approach would be affected as follows
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For the month of December, the records of Balin Corporation show the following information:
Required:
For each cost, indicate whether it would most likely be classified as direct labor, direct materials,
manufacturing overhead, sellingCASE 2A–5 Analysis of Mixed Costs in a PricingAccounts Receivable,
December 1 160,000
Classification Balance/ category Estimated doubtful Make use of all points, then make the
At the time a specific account is deemed uncollectible, the account is removed from accounts receivable
and a corresponding amount of bad debt expense is recognized.
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Bad debt expense $ 7,100
For the month of December, the records of Balin Corporation show the following information:
Required:
For each cost, indicate whether it would most likely be classified as direct labor, direct materials,
manufacturing overhead, sellingCASE 2A–5 Analysis of Mixed Costs in a PricingAccounts Receivable,
December 1 160,000
Classification Balance/ category Estimated doubtful Make use of all points, then make the
At the time a specific account is deemed uncollectible, the account is removed from accounts receivable
and a corresponding amount of bad debt expense is recognized.
Rate 1%
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