Cost driver economic plausibility

Economic plausibility involves the theoretical existence of a causal relationship between a driver and the costs it is supposed to drive. Goodness of fit involves the observed differences between predictions of costs based on the cost driver and the actual costs that occurred.  · (TCO G) The decision of which cost driver to use is based on _____.(Points: 5) economic plausibility goodness of fit the significance of the independent variable All of the above. Question (TCO H) Adding a 25% markup to the cost to produce a gallon of milk to obtain the optimal selling price is an example of the _____.(Points: 5) relevant-cost approach. independence between independent variables, economic plausibility, and specification analysis. economic plausibility, goodness Question: a. Three criteria to use in identifying cost drivers from the potentially large set of independent variables that can be included in a regression model are goodness of fit, size of the intercept term, and.

• Economic plausibility: There is a positive relationship between medical supplies cost and both the independent variables number of procedures and number of patient hours and they are economically plausible. • Goodness of fit: r² is 84% and the adjusted r² is 81%. The standard error of regression is $27, Economic Plausibility. The cost function shows a positive economically plausible relationship between number of orders per week and weekly total costs. Number of orders is a plausible cost driver of total weekly costs. Goodness of fit. The regression line appears to fit the data well. Economic plausibility: Promotional costs appear to be a plausible cost driver of ticket revenues. Sporting events frequently use promotional items to promote attendance and increase their patronage. Promotional costs appear to not be a plausible cost driver of ticket revenues.

Third party costs in economics, also known as negative externalities or transaction spillovers, are costs arising from an economic activity that are incurred by a third party who did not agree to the actions that caused the costs. Generally. Agricultural tractor prices vary greatly depending on size, style, usage and extras. Picking a tractor for farming means understanding exactly what you’ll use it to accomplish. Check out this guide to estimate that new tractor cost. Tractor. Learn about the economic costs of inflation, including menu costs, shoe leather costs, misallocation of resources, and tax distortions. In general, people seem to know that inflation is often not a good thing in an economy. This makes sense.