Estimating the appropriate cost driver as part of activity-based costing is an example of which type of predictive analytics?
A) classification
B) regression
C) time series
D) variance analysis

Question

Quizplus · Accepted Answer

Estimating the appropriate cost driver in activity-based costing involves predicting a continuous value (the cost) based on various activities, which is a regression problem in predictive analytics. Regression analysis is used to predict the value of a dependent variable based on the value(s) of one or more independent variables, fitting the scenario described.

Estimating the Appropriate Cost Driver as Part of Activity-Based Costing