ACCOUNTING PROJECT Term Paper Example | Topics and Well Written Essays - 250 words

ACCOUNTING PROJECT - Term Paper Example Machine rate is the summation of fixed, operating, and labor costs. The costs of operating the machines and the labor utilized in the production runs keep on fluctuating (Nobles et al., 162). The relationship between machine hours and total costs is positive since the coefficient of X is a positive value (+0.0173). However, the relationship is weak since the value of R2 is 0.24642 that is evidently between 0.0 and 0.25. The costs of running the machines are +0.0173 (number of machine hours) and a fixed cost of +2747.7. As the number of machine hors increases, total costs increase due to additional costs such as maintenance and depreciation expenses. In production, total cost is a summation of marginal costs and fixed cost. Normally, total costs increase as more units are produced up to a certain point where maximum productivity is attained (Nobles et al., 96). Total costs and units produced have a have a positive relationship (coefficient of X is +0.0178). The relationship is fair since the value of R2 is +0.33713. Total costs and units produced vary in most cases due to changes in efficiency of machines and factory