Which of the following statements related to cost estimation methods is true? 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. O b. The high-low method is the most accurate and reliable method to determine the cost behavior compared to scatter-graph plot and least-squares regression methods. O c. None of the given answers. O d. Only high-low method has a slope and an intercept. Oe. The most complex method of cost estimation is the high-low method.

Which of the following statements related to cost estimation methods is true? 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. O b. The high-low method is the most accurate and reliable method to determine the cost behavior compared to scatter-graph plot and least-squares regression methods. O c. None of the given answers. O d. Only high-low method has a slope and an intercept. Oe. The most complex method of cost estimation is the high-low method.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 10MC: Which of the following is one of the two approaches used to analyze data in the decision to keep or...

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Explain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?
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The high-low method used in determining costs can be used to estimate the cost queation using just two points of reference True False