Answer: Cost
Step-by-step explanation:
Regression allows for us to be able to predict the cost of a certain level of production based on past costs and cost behavior.
It works by using the basic formula:
y = mx + c
Y = total cost
M = variable cost
x = volume of production
c = fixed cost
Using this graphical method, the cost of production can be estimated and is therefore very useful in capital budgeting.