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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffcbfd447-27e5-45c1-8647-bd2015d82646%2F7de81e6c-71c3-4304-8142-3af28f0c07f3%2F93jqhjh_processed.jpeg&w=3840&q=75)
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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