A managerial accountant in a company wants to estimate the cost behaviour of cus

Question

A managerial accountant in a company wants to estimate the cost behaviour of customer service costs. Which of the following is an application of managerial judgement in determining cost behaviour? 4. A. The accountant performs a scattergraph analysis and deletes several data points determined to be outliers B. The accountant decides to use the last three years' data, but excluding the period when there was a workers' labour strike which resulted in reduced productivity C. The accountant runs a regression using direct labour hours as the independent variable. However, she/he adjusts the x coefficient variable upwards by 5 percent to reflect anticipated labour cost increases for the coming year. D. The account decides to try multiple regression since the coefficient of determination on a simple regression equation is 0.49. E. All of the above.

Explanation / Answer

The answer should be option E.All of the above because, the management accountant uses several management accounting techniques in order to suggest or advice the management regarding a specific issue and the management will choose among the different alternatives provided by him and take a necessary decision by basing on the.

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