An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation.

1. Compute b₁ and b₀ (to 1 decimal).
   b₁
   b₀
   
   Complete the estimated regression equation (to 1 decimal).
   = + x
   
2. What is the variable cost per unit produced (to 1 decimal)?
   $
   
3. Compute the coefficient of determination (to 3 decimals). Note: report r² between 0 and 1.
   r² =
   
   What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)?
   %
   
4. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)?
   $

An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation. Production Volume (units) Total Cost ($) 400 4,700 450 5,700 550 6,100 600 6,600 700 7,100 750 7,700 Compute b1 and b0 (to 1 decimal). b1 b0 Complete the estimated regression equation (to 1 decimal). = + x What is the variable cost per unit produced (to 1 decimal)? $ Compute the coefficient of determination (to 3 decimals). Note: report r2 between 0 and 1. r2 = What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)? % The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)? $

An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation.

1. Alan owes Brian HK$5,000, which is due on 31 March. On 15 March, he sought Brian’s consent to accept a lesser sum of US$600 on 24 March (i.e., one week in advance of the due date) to discharge the whole debt. Brian agreed to this arrangement. Alan then made a bank loan of US$600 at an annual interest rate of 5% with a view to paying Brian. Today is 24 March, Brian has now changed his mind. He insists to revert to the previous position of full payment HK$5,000 to be paid on 31 March. Advise Alan if his part payment is able to discharge the whole debt in such case. [ Discuss the doctrine of promissory estoppel.]

2       Milky entered into a contract for the hire of 6 rooms in New Castle Hotel in    Kowloon West. The purpose of the contract was to watch the fireworks gala in the Victoria Harbour on the 1st July (Reunification Day) through the windows of the rooms. Milky planned to invite her close friends and their families to stay in the 6 rooms to enjoy the fireworks. Just two hours before start of the fireworks, the Hong Kong Police Force received a serious threat from some terrorist organizations that they would launch large scale attack to the crowds who gathered to watch the fireworks. The Hong Kong Government immediate ordered the cancellation of the fireworks and gave an order that this kind of gala will not be launched at least for five years. Milky, having already paid a deposit, refused to pay the balance of the room charges. The hotel took legal action to recover the balance.

Required:

Analyse the chance of success by the hotel and explain in detail the legal principles that you base on for analysis.

3      Devil Computers Ltd (DCL) produces hard disks for installing in computers. The Hong Kong Land Bank (HKLB) would like to purchase new computers for its new computer room situate at the fourth floor of its headquarters in Homantin. HKLB asked DCL for their hard disks which could survive in good conditions for at least 3 years. DCL sold some of their “long life” hard disks to HKLB.

         In fact, the “long life” hard disks only survived for 6 months and the staff of HKLB complained about the performance and quality of the hard disks.

Required:

Advise whether HKLB could claim damages and repudiate the contract of sale with DCL under the provisions of the Sale of Goods Ordinance. Detail explanation of that specific provision is necessary.     

1. In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists of 15 hot dogs and 8 hamburgers. A hot dog cost $2.25 in 2006 and $5.40 in 2007. A hamburger cost $5.75 in 2006 and $7.86 in 2007. Calculate the CPI for both years and then find the inflation rate.

2. In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 25 sandwiches and 40 magazines. In 2006, a sandwich cost $4.50 and a magazine cost $3.99. In 2007, a sandwich cost $5.75. If the inflation rate in 2007 was 21 percent, then how much did a magazine cost in 2007?

3. When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $525.00. He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $699.00. What is the OVERALL rate of inflation for Anders' gym membership?

4. In 1949, Sycamore, Illinois built a hospital for about $500,000. In 1987, the county restored the courthouse for about $2.4 million. A price index for nonresidential construction was 12 in 1949, 96 in 1987, and 117.5 in 2000. Calculate the value of the courthouse in 2000 dollars and the value of the hospital in 2000 dollars and compare your answers. Which one cost more?

5. Ruben earned a salary of $60,000 in 2001 and $80,000 in 2006. The consumer price index was 156 in 2001 and 227.25 in 2006. What is Ruben's 2006 salary in 2001 dollars? What does this mean about how his purchasing power increased or decreased?

please write 2-3 paragraphs(essay) about: Explain why we should capitalize construction peroid interest in Oil&Gas producing entities accouding to Statment Number34 (Capitalizaation of Inteerest cost) standard.

Please do not copy and paste from other websites. Thank you

CAPITALIZATION-OF-INTEREST-COST ( ISSUED 10//79 )

Summary

This Statement establishes standards for capitalizing interest cost as part of the historical cost of acquiring certain assets. To qualify for interest capitalization, assets must require a period of time to get them ready for their intended use. Examples are assets that an enterprise constructs for its own use (such as facilities) and assets intended for sale or lease that are constructed as discrete projects (such as ships or real estate projects). Interest capitalization is required for those assets if its effect, compared with the effect of expensing interest, is material. If the net effect is not material, interest capitalization is not required. However, interest cannot be capitalized for inventories that are routinely manufactured or otherwise produced in large quantities on a repetitive basis.

The interest cost eligible for capitalization shall be the interest cost recognized on borrowings and other obligations. The amount capitalized is to be an allocation of the interest cost incurred during the period required to complete the asset. The interest rate for capitalization purposes is to be based on the rates on the enterprise's outstanding borrowings. If the enterprise associates a specific new borrowing with the asset, it may apply the rate on that borrowing to the appropriate portion of the expenditures for the asset. A weighted average of the rates on other borrowings is to be applied to expenditures not covered by specific new borrowings. Judgment is required in identifying the borrowings on which the average rate is based.

As the newly hired manager of a company that provides cell phone services, you want to determine the percentage of adults in your state who live in a household with cell phones and no land-line phones. How many adults must you survey? Assume that you want to be 90% confident that the sample percentage is within three percentage points of the true population percentage.

The price-earnings (PE) ratios of a sample of stocks have a mean value of 12.25 and a standard deviation of 3. If the PE ratios have a bell shaped distribution, use the 68-95-99.7 Rule to estimate the percentage of PE ratios that fall between:

A. 9.25 and 15.25.

Percentage =  %

B. 6.25 and 18.25.

Percentage =  %

C. 3.25 and 21.25.

Percentage =

NormalRandomVariables.

you are the operations manager for an airline and you are considering their higher fare for passengers and I'll seats how many randomly selected are passengers must you serve a assume that you want to be 99% confident that the sample percentage is within 3.5 percentage points of the population percentage assume that nothing is known about the percentage of Passenger who prefer aisle seats

Which of the following is the most accurate definition of the price elasticity of demand?