Which of the following statements related to cost estimation methods is false? 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. O b. 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. The three methods determine a slope and an intercept. O d. None of the given answers. The most complex method of cost estimation is the high-low method.

Q: Which of the following is a limitation of the gross profit variance analysis? a. The level of…

A: Gross profit variance analysis refers to the analysis which dealt with how to analyse the profit…

Q: f the following statements related to cost ?estimation methods is true .a None of the given answers…

A: Option d is correct The three methods determine a slope and an intercept…

Q: Please compute the variable-cost element (slope) and fixed-cost element (intercept) using regression…

A: Explanation Regarding Calculation: Using Data Analysis Tool under Data in Excel we can get…

Q: R-squared is a measure of a. The spurious relationship between cost and activity D. The fxed cost…

A: R-Square measures that how much variation of a dependent variable is explained by a independent…

Q: What is the chief drawback of the high-low method of cost estimation? What problem could an outlier…

A:

Q: Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis? a.what is the impact on…

A: SOLUTION- CVP ANALYSIS IS USED TO DETERMINE HOW CHANGES IN COSTS AND VOLUME EFFECTS A COMPANY'S…

Q: Which of the following statements is false? * The quantity factor refers to the change in the number…

A: The difference between the actual cost or price and the budgeted (standard) cost or price is…

Q: How can the concept of a composite unit be used to explain why an unfavorable total sales-mix…

A: Sales mix variance: The difference between a budgeted and actual sales mix. Sales mix is a…

Q: High-low and regression cost estimation methods are alike in that they both: Select one: O a. Have a…

A:

Q: Which cost estimation method is the least accurate or the most subjective?  account analysis…

A: Account analysis method of cost estimation decided whether the cost is fixed or variable it depends…

Q: Which of the following statements is false ? a. Volume-based costing has typically resulted in…

A: There are two methods of costing that are in place generally. One is volume based costing and other…

Q: ?Which of the following statements related to cost estimation methods is true

A: Cost estimation can be defined as an approach under the project management. It is the costing…

Q: Weaknesses of the high-low method include all of the following except:   a. only two observations…

A: Solution: Weaknesses of the high-low method include all of the following except "the mathematical…

Q: Explain what is meant by the term management by exception. What is the relationship between the…

A: Management by exception: Under this style of management, employees are allowed to take decisions…

Q: Which of the following is NOT true?     Multiple Choice   An activity variances describes the…

A: Activity Variance The term which are used in the costing techniques which describes as difference…

Q: (a) High-Low method uses only two data points which may not produce accurate results. (b)…

A: Solution: 1. True, High-Low method uses only two data points (high and low point) which may not…

Q: Search about how different techniques are efficient to estimate cost. – Engineered estimate of cost…

A: Four regular methodologies are utilized to appraise fixed and variable expenses:   Record…

Q: Assume that only the specified parameters (that is, variables) change in a sensitivity analysis. The…

A:

Q: 6. S1. The high-low method is generally less accurate than the least-squares regression method for…

A: The given question is regarding the high low method vs least squares regression method. 1) High low…

Q: ?Which of the following statements is false Activity-based costing typically provides less…

A: In order to solve in this question, we need to analyse the given statement one-by-one.

Q: Carter Dry Cleaning has developed two regression analyses for cost estimation. The accounting…

A: Cost estimation: It is the development of a defined relationship between cost object and cost…

Q: The high-low method used in determining costs can be used to estimate the cost queation using just…

A:

Q: Which method is used to see if a relationship between the cost driver and total cost exists?…

A: Cost drivers means activity units that will cause change in total cost for example, number of…

Q: “All the independent variables in a cost function estimated with regression analysis are cost…

A: Cost driver: Cost driver is one of the measurements that help the company in tracing directly the…

Q: What is an outlier? List some possible causes of outliers. How should outliers be handled in cost…

A: Outlier: An outlier is a data point that falls far away from the other points in the scatter diagram…

Q: 12) Which of the following techniques is not used to analyze cost bechavior? A) Least-squares…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: 2) Which of the following techniques is not used to analyze cost behavior? A) Least-squares…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following items would be useful to management in deciding whether to investigate the…

A: Standard costs are the budgeted costs related with the production, manufacturing and selling of…

Q: A regression equation is set up, where the dependent variable is total costs and the independent…

A: A correlation coefficient of 0.70 implies that the level of production explains 49% of the variation…

Q: The simplifying assumption that costs and volume vary in straight-line relationships makes the…

A: Cost Volume Profit Analysis is a method of costing that has an impact on the varying levels of cost…

Q: Which of the following statements related to cost estimation methods is false? O a. The…

A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…

Q: An easy way to estimate the variable and fixed costs components of a mixed cost is by: 1. a scatter…

A: There are two main cost estimation methods used to estimate amounts of fixed and variable costs are…

Q: Which of the following statements about determining the breakeven point is FALSE?       a)…

A: The breakeven point is the level of production at which the costs of production equals the revenue…

Q: Which of the following statements is false?   a. The price factor refers to the change in selling…

A: Gross profit variance measures the ability of a business to generate a profit from its sales and…

Q: plai

A: A static budget is one that employs estimated quantities for a certain period prior to the start of…

Q: Which of the following statements related to cost estimation methods is false? O a. The most complex…

A: Cost estimation methods means by which method variable costs and fixed costs of the business can be…

Q: Which of the following is the difference between the actual cost of materials and thematerials cost…

A: Total material variance = Actual cost of materials - Budgeted cost of materials at actual level of…

Q: Help question 26

A: False. Price variance is the difference between the Standard price of the input and actual price of…

Q: On a break-even chart, the fixed cost line is: Select one: a. parallel to the x-axis b. parallel to…

A: Break even chart shows the volume at which Total Sales is equals to total cost.

Q: Explain why cost predictions based on the same cost driver can differ when applying the high-low…

A: The High-low method is a cost computation technique that separates variable and fixed cost from…