Chapter 6 - forecasting Flashcards
1
Q
What are the steps of the high - low method?
A
- Select the highest and lowest activity levels and identify their associated costs.
- Find the variable cost per unit.
- Find the total fixed cost
2
Q
How can the straght line equation be used for costing
A
y = a + bx
- a = Fixed cost per period (y intercept)
- b = Variable cost per unit (gradient)
- x = activity level
- y = total cost (a+b)
3
Q
If the correlation of to variables on a graph is no obvious how will the correlation coefficient (r) help to determine the correlation?
A
- r = +1 → a perfect posstivie correlation
- r = 0 → no correlation
- r = -1 → a perfect negative correlation
4
Q
What is the coefficient of deterination?
A
r2
- If r = 0.98, r2 = 0.96 or 96%.
- This means that 96% of the variance in y is explained by variations in x
- The other 4% is due to random fluctations or other factors not identified in the 2 varaibles.
5
Q
- What is data analysis
- What is data mining?
A
- The pocess of collecting, organising and analysing large sets of data to generate trends to aid decision making
- The process of sorting through data to identiy patterns and relationships betwen different items.
6
Q
What is ‘Big data’?
A
Extremely large data sets that may be analysed computationally to reveal patterns & trends → especially relating to human behaviour and interactions.
7
Q
Whats are the advantages and disadvanatges of big data?
A
8
Q
- What is a non - participative (top down) budget?
- What is a participative <em>(bottem up)</em> budget?
A
9
Q
What is a…
- Continous/rolling budget?
- Incremental budget?
- Zero - based budget?
A
- Budgets set a year in advance and updated regularly.
- A budget using the previous years figures as a starting point adding increments as necessary (e.g. inflation)
- Its starts the budgeting process form 0 as it does not take anything for granted.
10
Q
What are…
- Product based budgets?
- Reposnsibility based budgets?
- Activitiy based budgets?
A
