COST CONCEPT

Question 1

Cost Segregation Techniques

Answer 1

High Low
vc/unit = change in total / change in driver

Scattergraph
- plot data points

Lease Square
y = a + bx
€y = na + b€x
€exy = a€x + b€x

Question 2

correlation analysis
- measure the strength of of linear relationship

type?

Answer 2

straight line - high correlation
random - low or no correlation

Question 3

goodness of fit
- accuracy of cost function

types?

Answer 3

coefficient of correlation
- degree of relationship
+1 positive ( variable)
0 no correlation
- 1 negative ( fixed)

coeeficient of determination
- strenght of cost function
- the closer to 1 the better