What is the purpose of using the high-low method?

Q: What are the reasons for preparing horizontal and vertical analysis ?

A: Vertical and horizontal analysis of financial statements is part of financial statement analysis.…

Q: What is the carryover ratio? What parameters of the base does its value depend on?

A: Carryover Ratio The purpose of measuring the carryover ratio  is to determine the ratio which are…

Q: What is directional test?

A: Audit: Audit is the process of verification of the compliance of the financial statements. It…

Q: What is the purpose of EDI?

A: Transparency in electronic data exchange: Expanding EDI enables suppliers to get access to a buyer's…

Q: What is the Tolerable Error Rate?

A:

Q: Describe about the DVL methods and what are its advantages?

A: Dollar-value-LIFO: This method shows all the inventory figures at a dollar price rather than units.…

Q: A) What is VAT? what is the difference between input and output VAT?

A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: What is broad averaging

A: Broad Averaging: Broad averaging is also known as peanut butter cost is a costing approach of…

Q: What is the difference between vertical analysis and horizontal analysis?

A: Explain the difference between the horizontal and vertical analysis. Horizontal Analysis: it…

Q: What are the advantages of the scattergraph method over the high-low method? Thehigh-low method over…

A: Introduction: Cost accounting is beneficial since it can demonstrate where a corporation spends…

Q: Are these good advantages and disadvantages about RRSP’s? What can I include and remove?

A: RRSP or registered retirement savings plan is a retirement savings plan for employees and self…

Q: Under what conditions are the results from using the direct method of allocation the same as those…

A: Allocation of Cost = Cost allocation is a Cost accounting Process in which organisation identify the…

Q: Describe the PW method?

A: There are different types of methods for comparing the worthiness of the projects. Some of the tem…

Q: What are some advantages of the Direct Write-Off method? What are some disadvantages of the Direct…

A: Direct Write Off Method: According to Direct Write off method, Bad Debt Expense is recognized once…

Q: Why is the NPV preferred over the IRR?

A: Net Present Value is a method of finding the profitability of a project by discounting future cash…

Q: What is Miller model?

A: It represents the impact of individual taxes or personal taxes into the valuation of a levered firm,…

Q: What is the meaning of margin of safety?

A:

Q: What is a limit order?

A: Limit order It is such an order to buy or trade a security at or superior to a predefined cost. The…

Q: What are the two shortcomings of the direct write-off method?

A:

Q: How efficient is an High-low method technique?

A: Using high low method, different types of costs can be separated.

Q: Is an higher NPV better than a lower NPV and why?

A: The net present value is the difference between sums of the present value of cash inflows and…

Q: Formula for put call parity?

A: Put call parity Put-Call parity defines the value of same class European put and call options. Put…

Q: advantages and disadvantages of the scattergram method as compared to the high-low method?

A: Solution High-low method takes high level activity and low level activity and measure the total cost…

Q: What are the advantages and disadvantages of  LIFO?

A: Last-in-First-Out: In Last-in-First Out method, the costs of last purchased items are considered as…

Q: What is the value of Po?

A: Annuity is referred to a cash payment being made at regular intervals. It is a widely used concept…

Q: Explain the coefficient of variation?a

A: The coefficient of variation (CV) may be a statistical measure of the scattering of information that…

Q: What is the decision rule for NPV?

A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…

Q: What is GAAP and how does it work

A: The accounting is based on various principles that are defined by GAAP or IFRS.

Q: What are the Replacement-Analysis Fundamentals?

A: Replacement analysis refers to the process where an organization determines whether it is beneficial…

Q: What is lapping?

A: Definition: Lapping: Lapping is an accounting fraud in which an employee steals cash from accounts…

Q: What is the Baumol model, and how is it used?

A: The Baumol model, also known as the Baumol-Allais-Tobin (BAT) model, is a cash management model. In…

Q: What is the major disadvantage of the high-low method?

A: High-low method: High-low method is a method of calculating the variable cost and the fixed cost of…

Q: How do you find full absorption cost

A: Absorption costing refers to the method of managerial accounting in order to capture all the costs…

Q: What is a cross rate?

A: Cross rate is an exchange rate of currency between two countries, but both countries are not using…

Q: What is the primary advantage of the multiple-step format?

A: Definition: Multi-step income statement: The income statement represented in multi-steps with…

Q: straight line method?

A: Depreciation = (Historical cost - Salvage Value)/Useful life  Book Value of Asset = Historical cost…

Q: What is the replacement analysis?

A: Replacement analysis is one of the keys examinations in capital budgeting.

Q: What is hurdle rate?

A: Hurdle rate a rate usually used in capital budgeting decisions to calculate the acceptability of a…

Q: Distinguish between the single-rate and the dual-rate methods.

A: Cost Allocation: The process of assigning the cost to the cost object is cost allocation. The cost…

Q: What are the advantage  of the scattergraph method over the high-low method? The high-low method…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: What are some limitations of using the direct write-off method?

A: In order to increase sales generally business enterprises sales the goods on a credit basis. When…

Q: Which of the following defines iterative calculation?

A: SPREADSHEET

Q: Explain high-low method.

A: The highly-low approach of cost accounting is a system in which a limited volume of data is used to…