8) The essential difference between these two is that Logistic regression is used when the dependent variable is binary in nature. 9) Inflation can distort data that are compared over time so purely inflationary effects should be removed. 10) When choosing among cost drivers, managers trade off level of detail, accuracy, feasibility, and costs of estimating functions. 11) In the cumulative average-time learning model, cumulative average time per unit declines by a constant percentage each time the cumulative quantity of units produced doubles 12) In regression analysis, the term "goodness of fit indicates the strength of the cost driver and the costs. relationship between 13) The vertical difference, called the residual term, measures the distance between actual cost of one period and estimated cost of the next period 14) Step fixed-cost functions are variable over the long run. 15) A step cost function is an example of a linear cost function