Which of the following statements related to cost estimation methods is true? The low-high method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O b. The high-low method is the most accurate and reliable method to determine the cost behavior compared to scatter-graph plot and least-squares regression methods. O c. None of the given answers. O d. Only high-low method has a slope and an intercept. Oe. The most complex method of cost estimation is the high-low method.
Which of the following statements related to cost estimation methods is true? The low-high method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O b. The high-low method is the most accurate and reliable method to determine the cost behavior compared to scatter-graph plot and least-squares regression methods. O c. None of the given answers. O d. Only high-low method has a slope and an intercept. Oe. The most complex method of cost estimation is the high-low method.
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 16MC: Which of the following methods of cost estimation relies on only two data points? A. the high-low...
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