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Winter 2017

MAQ Winter 2017 Cover

Articles

By Michael E. Cafferky, DBA

First-time entrepreneurs face many unknowns, including how to estimate the cost of goods sold. Because of this, markup pricing can be useful to calculate the breakeven point. Markup pricing involves adding a percentage to the cost of a product to calculate a selling price and its biggest advantage is that it simplifies decision making.

By David E. Stout, Ph.D.

Cost estimation is one of the most fundament tools used by management accountants, and Microsoft Excel is a powerful tool that can be used to help generate cost estimates. In the first of a two-part series about the cost-estimation process in Excel, two methods for estimating a simple linear cost function--chart functionality and the Regression analysis tool--are illustrated.

By David E. Stout, Ph.D., and Jeremy T. Schwartz, Ph.D., CPA

Part 2 extends the application of Excel to estimate and interpret the output from a multiple-regression model--a cost function that includes more than a single independent variable--and a learning curve model. This involves fitting a multiple linear regression model to a new data set, which is helpful when more than one independent variable helps to explain variations in the dependent variable.