f 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

f 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

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...

See similar textbooks

Similar questions

Which of the following statements related to cost estimation methods is false? a. 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. O c. The most complex method of cost estimation is the high-low method. O d. None of the given answers. O e. The three methods determine a slope and an intercept.
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? O a. 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. e. The most complex method of cost estimation is the high-low method.
Which of the following statements related to cost estimation methods is true? O a. The most complex method of cost estimation is the high-low method. 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. 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 d. Only high-low method has a slope and an intercept. O . None of the given answers.
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.
Which of the following statements related to cost estimation methods is false? O a. The most complex method of cost estimation is the high-low method. 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. None of the given answers. O 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. The three methods determine a slope and an intercept.
Which of the following methods of cost estimation relies on only two data points?A. the high-low methodB. account analysisC. least-squares regressionD. SWOT analysis.
High-low and regression cost estimation methods are alike in that they both: Select one: O a. Have a slope term but not an intercept term. O b. Provide the same accuracy and reliability O c. Have an intercept term but not a slope term. O d. Have an intercept term and a slope term.
Explain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?
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.
(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
Which of the following statements related to CVP chart is not true? O a. None of the given answers. O b. To calculate the total fixed cost from a graph is by multiplying a level of volume by the variable cost per unit found out earlier and subtracting that from the total cost for that level of volume. Oc. The high-low method is a way to estimate the cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O d. To determine the variable cost per unit froma graph, the change in cost is divided by the change in units. O e. The slope of the total cost line determines the fixed cost per unit. Of. The intercept between the total cost line on a graph and the y axis determines the fixed cost. on Mazoon Company sells 500 units resulting in $300,000 of sales revenue, $100,000 of variable costs, and $36,000 of fixed costs. The number of units that must be sold to achieve $40,000 of operating income is: Fir F2 F3 F9 F10 F1 F4 F5 F6 F7 F8 23…