Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 18

Grant Healthcare provides plastic gloves for hospitals. Grant is forecasting costs for future production. The dependent variable is labor expense. List some possible independent variables for a regression analysis of financial data.

Step 1 of 6

In study the cost estimates variable which is dependent and the variable which is not dependent must studied, on the ground that dependent variable have more effect on the decision making process while independent variable have the impact but in least or may be negligible. As per this analysis labor expenses is the dependent variable and other like product age, time involved and like are independent variable and the company must studied from this angle to make data more reliable and accurate.