A measurement of how much of the fluctuation of a cost is explained by changes in the cost driver is:
A) coefficient of determination
B) standard error of coefficient
C) least- squares analysis
D) standard error of Y

Question

Quizplus · Accepted Answer

The coefficient of determination measures how well the changes in the cost driver explain the fluctuations in the cost, indicating the proportion of variance in the dependent variable predictable from the independent variable.

A Measurement of How Much of the Fluctuation of a Cost