Which of the following statements about the visual fit method is/are correct? A: The method results in creation of a scatter diagram. B: The method is not totally objective because of the manner in which the cost line is determined. C: The method is especially helpful in the determination of outliers. A. A only B. A and B C. A and C D. A, B, and C

Which of the following statements about the visual fit method is/are correct? A: The method results in creation of a scatter diagram. B: The method is not totally objective because of the manner in which the cost line is determined. C: The method is especially helpful in the determination of outliers. A. A only B. A and B C. A and C D. A, B, and C

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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Which of the following statements related to cost estimation methods is true ? a . Only high -low method has a slope and an intercept . b. The scatter - graph 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 . c. The most complex method of cost estimation is the high - low method . d. The least -squares regression method is the most accurate and reliable method to determine the cost behavior compared to scatter -graph plot and high -low methods . e. None of the given answers
Which of the following statements related to cost ?estimation methods is true .a None of the given answers .b The most complex method of cost .estimation is the high-low method .c The scatter-graph 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 .d The three methods determine a slope and an .intercept .e The high-low method is the most accurate Ox and reliable method to determine the cost behavior compared to scatter-graph plot and least-squares regression methods
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_____Identifying the relationship between the activity and the costs is a key step in which of the following cost estimation methods? a) Scattergraph. b) High-low method. c) Linear regression. d) Account analysis.