Excel Magic Trick # 265: Mixed Cost Accounting Linear Regression - Ron's Class

[0selam]

(E11-(((1000*(1.05^2)))

Hi I came across this formula, Please help me understand it

I am trying understand why exponent over percentage and who can I change that say to 26.3 percent? using same method. thank you so much in advance!!!

[bittersweatify]

averge costs over average hours equals variable rate per direct labor hour.. am i ryt? scatter graph method in cost accounting..



[OocammieoO]

Hi, I find your videos very helpful ^^. And I was just wondering what does it mean when line of best fit becomes for example y = 63.556x - 5901 how do you differentiate the fixed cost from variable cost? THANK YOU :)

-- very confused accounting student

[ExcelIsFun]

Fixed is the number without the x: 5901

Variable is the number with the x:

63.556

[OocammieoO]

But the equation that I am graphing is an operation salaries cost function. It doesn't make sense to me that if they have zero operations they would have a fixed expense of -5901? Meaning the employees are giving the company money when they are not operating? I tried to use a polynomial trend line but I got more confused y = 0.1667x^2 - 2.0056x + 500.54. So meaning the fixed cost is 500? and the variable cost is 0.1667x^2 - 2.0056x? The x^2 do not make sense to me.

[ExcelIsFun]

You should read your textbook or talk to your professor to get the scoop for your particular case. But Salaries are often times fixed.

I don't know anything about polynomial trend line for the above accounting example.

The above example is linear - there is no x^2

[OocammieoO]

Hehe okay thank you very much though, I really appreciate it ^.^

[ExcelIsFun]

You are welcome!

[Reddryder9]

Wow! Thanks so much, this was very informative and extremely helpful!

[ExcelIsFun]

I am glad that it was helpful!

[kamui1235]

Thank you very much, excellent ! excellent ! excellent !

[ExcelIsFun]

You are welcome!

[rocketer90]

helpful ^-^

[ExcelIsFun]

Dear rocketer90,

I am glad that it was helpful!

--excelisfun

[y0ung01]

How do you find the r squared?

[ExcelIsFun]

Dear y0ung01,

One way is to use the RSQ function:

=RSQ(y-values,x-values)

--excelisfun

[andrewbottom1]

Interesting kinda hard though for me.

[ExcelIsFun]

Dear andrewbottom1,

If the Excel is hard, try this video and the others in is this series:

Excel Basics #1: What Is Excel?

--excelisfun

[TiffanySouthall]

can you clarify which is the independent and dependent varable. If y=predictor then what is x=?

[ExcelIsFun]

Dear TiffanySouthall ,

independent = predictor = x

dependent = predicted = y = f(x)

--excelisfun