6. S1. The high-low method is generally less accurate than the least-squares regression method for analyzing the behavior of mixed costs. S2. The fact that the least-squares regression method uses only two data points is a major defect of the method. Group of answer choices

6. S1. The high-low method is generally less accurate than the least-squares regression method for analyzing the behavior of mixed costs. S2. The fact that the least-squares regression method uses only two data points is a major defect of the method. Group of answer choices

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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Question

46. S1. The high-low method is generally less accurate than the least-squares regression method for analyzing the behavior of mixed costs.
S2. The fact that the least-squares regression method uses only two data points is a major defect of the method.

Group of answer choices

a. Both statements are true

b. Neither of the statements is true

c. Statement 2 is true

d. Statement 1 is true

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