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Which of the following is NOT true of regression techniques for estimating costs?

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

Which of the following is NOT true of regression techniques for estimating costs?

a) They permit the inclusion of more than one predictor.

b) They typically use the highest and lowest activity points to estimate the relation between cost and activity.

c) They help develop estimates that have a broader base than those based on a few select points.

d) They are designed to generate a line that best fits a set of data points.

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