Answered: An advantage of the high-low method is…

An advantage of the high-low method is that it a. is subjective. b. is objective. c. is the most accurate method. d. removes outliers e. is descriptive of nonlinear data

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter6: Audit Evidence

Section: Chapter Questions

Problem 10CYBK

See similar textbooks

Related questions

Q: Which of the following is false of the historical VaR? a. It is based on normal distribution of…

A: Ans. Historical VaR do makes use of Monte Carlo Simulation.

Q: What is the Tolerable Error Rate?

Q: Which of the following is not one of the main issues regarding data collection which can…

A: Data collection is one of the modt fundamental and important steps in any statistical analysis. If…

Q: It says that step a is wrong. That those are not the right ROI's. Is there another way to solve that…

A: Introduction:- Return on investment indicates how well an investment performed in comparison to the…

Q: What are the differences between MIRR method and IRR method?

A: The question is related to MIRR and IRR.

Q: Explain why NPV is the best criterion and how it overcomes problems inherent in the other methods.

A: The "value derived from the use of money over time as a consequence of investment and reinvestment"…

Q: Which of the following is not a cause of mistakes in model building? Choices: A.Sub-optimal…

A: There are numerous mistakes in planning stage of model building. Unclear vision, lack of resources,…

Q: Describe in words how an NPV profile is constructed. How do you determine the intercepts for the x…

A: NPV profile means the graph which depicts the Net present value of the project at various discount…

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: Which answer below is the result of this error?

A: In the given case, the journal entry is recorded incorrectly. Due to which the service revenue will…

Q: What are the steps in computing the cost of a prediction error when using the EOQ decision model?

A: Economic Order Quantity (EOQ): Economic order quantity is the quantity of order that is purchased…

Q: Information is verifiable when. a. Using different methods it gives you same results b. It give you…

A: The process by which financial transactions of the business are recorded and communicated with the…

Q: The practice of bringing specific issues to the attention of management if they depart from…

A: Management by exception is a recognition and interaction device that alerts a manager whenever and…

Q: For each of the following independent scenarios, indicate the effect of the error (if any) on:

A: Step 1 Journal is the part of book keeping.

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

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

Q: What are the two primary factors that are difficult to estimate in sensitivity analysis?

A: Answer: Sensitivity analysis is commonly used in determining the interactions in a system or even a…

Q: What is an observation that lies outside its expected distribution? Multiple Choice Outlier…

A: Given the following question What is an observation that lies outside its expected distribution?…

Q: n case of conflict in ranking, method provides better results than method O IRR, NPV O NPV, IRR O…

A: Capital budgeting techniques are a way to analyse and evaluate a project based on various criteria…

Q: which of the following is not a qualitative characteristic associated with Relevance? a.…

A: Financial statements should be true and fair, for presenting true and fair financial information;…

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: The primary benefit of using nonstatistical sampling is thata. It generally results in a smaller…

Q: How does the Representational faithfulness is enhanced if information is free from error?

A: Accounting: Accounting is the process of recording the financial transaction of the organization…

Q: What kinds of controls are the most difficult to show in a balanced scorecard?

A: The balanced scorecard is a too for measuring the performance.

Q: This is is used to check the effect on the recommendations of a model if the estimates turn out to…

A: solution: concept In a what if analysis we try to answer the question of what if What if the value…

Q: NOT true about simulation models?

A: A simulation analysis is a technique of developing a mathematical representation of an original…

Q: the quality of information that makes it complete, neutral, and free from error relavance O…

A: Financial statement means the statement including income statement , balance sheet , cash flow…

Q: Which one is not an example of input to a mathematical model? a. Uncontrollable or environmental…

A: Solution: Project result is not an example of input to a mathematical model because it is an example…

Q: The following are qualitative characteristics of presentation, except O Uniformity O…

A: Uniformity- It is the quality of being homogeneous. Understandability-The information must be…

Q: Answer the following questions : A. Which alternative is the best? B. Calculate the point of…

A: A firm finances its business operations through different sources of capital such as ordinary…

Q: Explain the theoretical under-pinnings and the limitations of the current rate and temporal methods.

A: Accounting exposure is an exposure arising in the statement of final accounts because of the…

Q: Discuss the main difference between the single-index model and the Markowitz optimization model.

A: Single Index Model- This article is concerning the quality rating model in political economy. For an…

Q: The coefficient of variation is useful in determing the relative degree of variability of different…

A: In finance, the coefficient of variation is a statistical measure that is used for determining the…

Q: In a maximal flow problem, a.the flow out of a node is less than the flow into the node. b.the…

A: In a maximal flow problem the number of arcs entering a node is equal to the number of arcs exiting…

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: Which of the following statements about the visual fit method is/are correct? A: The method results…

A: Answer- Visual Fit Method is a cost estimation method in which previous data on cost levels and…

Q: __________ data has a meaningful distance between data points. Multiple Choice Ordinal Interval…

A: Interval means the difference between the two date.

Q: The FIFO method provides a major advantage over the weighted-average method in that______?

A: The FIFO method provides measurements of work done during the current period .

Q: The inputs to a model may have different roles. Among the choices, which should be excluded?…

A: Inputs are main variables for decision making in any model. Inputs influence the output amd the…

Q: Discuss the main and major difference between single index model and Markowitz optimization model.

A: The Single Index Model is an asset pricing model in which the returns on security can be interpreted…

Q: Fill in the blanks. a. In multiple linear regression analysis, the independent variables are called…

A: Fill in the blanks: Predictor variable: Predictor variable in a regression in the independent…

Question

An advantage of the high-low method is that it

a. is subjective.

b. is objective.

c. is the most accurate method.

d. removes outliers

e. is descriptive of nonlinear data

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is not one of the main issues regarding data collection which can significantly affect precision and reliability when using regression or any other cost estimation method? Multiple Choice Time period choice. Nonlinearity. Relevant range. Data accuracy.
Which of the following statements is FALSE about "backward thought process'? Statement I. It considers a variable of interest (the model output) and defines its underlying, or causal, factors. Statement Il. It is a qualitative process. Choices: A. Neither of the two statements is FALSE B. Both statements are FALSE. C. Only statement Il is FALSE. D. Only statement I is FALSE.
The coefficient of variation is useful in determing the relative degree of variability of different data sets if those data sets have different: a. Means or different units of measurement b. Means but not different units of measurement c. Units of measurement, but not different means
Information is verifiable when. a. Using different methods it gives you same results b. It give you different results using same methods c. It does not give any result d. Using same methods it gives you similar results
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
(a) High-Low method uses only two data points which may not produce accurate results. (b) Least-squares Regression method is a statistical technique that uses all of the observations of cost data . a. Only statement A is true b. Only statement B is false c. Both statements are false d. Both statements are true
How does it compare with the NPV based on the WACC method? (Select the best choice below.) A. The NPV computed using the FTE method cannot be compared to the NPV based on the WACC method. B. The NPV computed using the FTE method is always higher than the NPV based on the WACC method. C. The NPV computed using the FTE method is always lower than the NPV based on the WACC method. D. The NPV computed using the FTE method is the same as the NPV based on the WACC method.
Which of the following statements about Least Squares Regression is not true ? Least -squares regression is a mathematical technique to fit a cost -estimating equation to observed data . In least -squares regression , a statistical measure (R -squared ) can be used to determine how well the equation fits the data . Least -squares regression is considered superior to the high -low method because it uses more data points than just the high and low points None of the listed choices are the correct answer because all of the listed choices are true . Least -squares regression maximizes the vertical squared difference between the estimated and actual costs at each data point .
Compare and contrast the difference between the retrospective analytics approachand the predictive analytics approach to data analytics.
Compare the linear and nonlinear CVP analysis and provide analyses about the effectiveness of both.
The practice of bringing specific issues to the attention of management if they depart from expectation is called __________. Multiple Choice management by exception anomaly outlier fuzzy matching
Which of the following is not a cause of mistakes in model building? Choices: A.Sub-optimal choice of functions B.Overconfidence, lack of checking and time constraints C.Inability to use logical functions D.Insufficient use of general best practices relating to flow, formatting and audit paths E.All of the choices are causes of mistakes