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Regression analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Regression analysis

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
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    Posts
  • October 27, 2015 at 2:20 pm #279264
    anu1234
    Member
    • Topics: 78
    • Replies: 65
    • ☆☆

    If TC = 4Q 60 where Q is the no of units produced per month and TC is total cost in a month which is correct. ?

    A. VC = 600 /unit , FC =4 per month
    B. Annual fixed cost = 28800
    C.annual fixed cost = 7200
    D. Variable cost = 4 / unit , FC = 7200/ month

    October 27, 2015 at 3:06 pm #279275
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51599
    • ☆☆☆☆☆

    You have not typed the question correctly.

    TC = 4Q 60 does not make any sense.

    October 27, 2015 at 3:19 pm #279276
    anu1234
    Member
    • Topics: 78
    • Replies: 65
    • ☆☆

    I am sorry .. Its
    TC = 4Q + 600

    October 27, 2015 at 4:03 pm #279286
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51599
    • ☆☆☆☆☆

    In that case the variable cost is $4 per unit and the fixed cost is 600 a month (therefore 7200 a year).

    Have you watched the lectures on regression analysis?

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