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Forecasting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Forecasting

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • September 23, 2021 at 9:59 pm #636392
    James124
    Member
    • Topics: 158
    • Replies: 136
    • ☆☆☆

    Tutor John Moffat,
    Linear regression method has a advantage of “It simplies the budgeting process”.
    I am unable to catch the concept.

    September 24, 2021 at 7:58 am #636402
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51541
    • ☆☆☆☆☆

    If we have an equation giving the total cost for the level of production (using regression analysis) then it makes budgeting simpler because once we have budgeted how many units will be produced then the equation will give us the budget for the total costs.

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