When using the visual-fit method to estimate a cost function, we can estimate the fixed cost by O the point where the sketched line (through all or most of the data points) intersects the y-axis O calculating the variable cost per unit of the cost driver O the point where the sketched line (through all or most of the data points) intersects the x-axis O subtracting the variable cost at any cost driver level from the total cost

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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When using the visual-fit method to estimate a cost function, we can
estimate the fixed cost by
O the point where the sketched line (through all or most of the data points)
intersects the y-axis
O calculating the variable cost per unit of the cost driver
O the point where the sketched line (through all or most of the data points)
intersects the x-axis
O subtracting the variable cost at any cost driver level from the total cost
Transcribed Image Text:When using the visual-fit method to estimate a cost function, we can estimate the fixed cost by O the point where the sketched line (through all or most of the data points) intersects the y-axis O calculating the variable cost per unit of the cost driver O the point where the sketched line (through all or most of the data points) intersects the x-axis O subtracting the variable cost at any cost driver level from the total cost
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