Regression Line Definition:

A line fitted to an array of plotted points. The slope of the line, denoted by the letter b in the linear equation Y = a + bX, represents the average variable cost per unit of activity. The point where the line intersects the cost axis, denoted by the letter a in the above equation, represents the average total fixed cost.

Other Related Accounting Articles:

• Scatter Graph Method Definition
• Least-Squares Regression Method Definition
• Independent Variable Definition
• Dependent Variable Definition
• Multiple Regression Definition
• Variable Cost Definition
• Adjusted R2 Definition
• High-Low Method
• Long Run Average Total Cost
• Cost Volume Profit Analysis