FEATURES OF THE REGRESSION ANALYSIS METHODOLOGY IN MANAGEMENT ACCOUNTING
FEATURES OF THE REGRESSION ANALYSIS METHODOLOGY IN MANAGEMENT ACCOUNTING
Author(s): Merab JikiaSubject(s): Business Economy / Management, Methodology and research technology, Accounting - Business Administration
Published by: Asociaţia de Cooperare Cultural-Educaţională Suceava
Keywords: Regression analysis; cost function; independent variable; dependent variable; crossing parameter; deviation parameter; mini-max method; scatter point method; least squares method; interpolation;
Summary/Abstract: As it is known, the budget is made on the basis of forecasts. The forecast may be prepared for production and sales volume, sales revenue, costs, etc. The purpose of forecasting is to establish realistic assumptions for planning during the budget process. The forecast may be based on simple assumptions, such as a forecast of sales volume and sales growth of X%. On the other hand, forecasting can be done using different forecasting models, methods or techniques that take into account the trends and variability of previous years. The main purpose of using these models and techniques is to provide a more accurate and reliable forecast. Regression analysis can be used to predict linear relationships between several variables in management accounting. We discuss a linear relationship between only two variables. There are several methods for identifying this relationship: mini-max, scattered point, and least squaresregression analysis.
Journal: Ecoforum
- Issue Year: 11/2022
- Issue No: 3
- Page Range: 0-0
- Page Count: 7
- Language: English