Which of the following statements is true? Select one: one: a. The most complex of the cost estimation methods is the high-low method.
Q: f the following statements related to cost ?estimation methods is true .a None of the given answers…
A: Option d is correct The three methods determine a slope and an intercept…
Q: What is the chief drawback of the high-low method of cost estimation? What problem could an outlier…
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Q: Which of the following statements related to cost estimation methods is false? The least-squares…
A: Following is the answer to the given question
Q: Requirements a. What is the slope coefficient? b. What is the constant for the estimated cost…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: High-low and regression cost estimation methods are alike in that they both: Select one: O a. Have a…
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Q: Which of the following cost formulas is not allowed under PAS 2? Select the correct response:…
A: Form PAS 2 describes the accounting treatment applicable for inventories. The form provides complete…
Q: Describe the visual-fit method of cost estimation. What are the main strengths and weaknesses of…
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Q: Give the general formula for a mixed cost
A: Cost: It refers to the economic value incurred by an organization for manufacturing a product or…
Q: ?Which of the following statements related to cost estimation methods is true
A: Cost estimation can be defined as an approach under the project management. It is the costing…
Q: Which of the following statements related to cost estimation methods is true ? a . Only high -low…
A: When the total cost for the expenses change or does not change with the change in the output, it…
Q: Using the high-low method, determine the cost function for each cost?
A: High low method of cost estimation says that costs at highest level and lowest level are to be taken…
Q: How efficient is an High-low method technique?
A: Using high low method, different types of costs can be separated.
Q: Define cost tracing? Give three examples?
A: Cost tracking: Cost tracking means the historical record of all the information of cost as it is…
Q: What is the difference between a linear and a nonlinear cost function? Give an example of each type…
A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…
Q: Which of the following are assumptions associated with the cost equation? Check all that apply. The…
A: Cost equation means a line or formula which shows both types of cost like fixed costs and variable…
Q: Identifying the relationship between the activity and the costs is a key step in which of the…
A: Scattergraph is a method of visual representation of the relationship between the cost & the…
Q: Briefly explain each of the following methods of computing a break-even point in units: (a)…
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Q: What assumptions are made when using the simplest version of the economic-order-quantity (EOQ)…
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Q: The high-low method used in determining costs can be used to estimate the cost queation using just…
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Q: How can we calculate the Total Present Cost for the Base Case and Alternative?
A: The question is based on the concept of calculation of cost benefit analysis of base case and…
Q: “All the independent variables in a cost function estimated with regression analysis are cost…
A: Cost driver: Cost driver is one of the measurements that help the company in tracing directly the…
Q: a range in which the relationship between the cost and its driver is still valid is call
A: Solution: A range in which the relationship between the cost and its driver is still valid is called…
Q: Describe three alternative linear cost functions.
A: Cost Function: Cost function represents the basic change comes in the total cost due to the change…
Q: Explain how the high-low method determines:a. The variable portion of a semivariable cost.b. The…
A: This method is used to segregate variable cost and fixed cost. In this method, highest level of…
Q: 2) Which of the following techniques is not used to analyze cost behavior? A) Least-squares…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: In describing the cost formula equation, Y = a + bX, which of the following is correct:
A: The cost volume formula is denoted by - Y= a + bx where- “Y” is total cost “a” is the total fixed…
Q: How is uniform cost search different from plain BFS?
A: UCS : Uniform Cost Search is an uninformed search algorithm. It cannot deal with a heuristic…
Q: Which of the following statements related to cost estimation methods is true? The low-high method is…
A: All four methods of cost estimation has its own pros and cons. For quick estimate requirement,…
Q: The simplifying assumption that costs and volume vary in straight-line relationships makes the…
A: Cost Volume Profit Analysis is a method of costing that has an impact on the varying levels of cost…
Q: Which of the following statements related to cost estimation methods is false? O a. The…
A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…
Q: In using least-squares to estimate the variable and the fixed components in a mixed cost, these two…
A: Least Square method (Linear regression) is a very accurate method for dividing cost into variable…
Q: An easy way to estimate the variable and fixed costs components of a mixed cost is by: 1. a scatter…
A: There are two main cost estimation methods used to estimate amounts of fixed and variable costs are…
Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?
A: First-In-First-Out (FIFO) Method: It is a method of managing inventory of an organization. Under a…
Q: Which of the following statements related to cost estimation methods is false? O a. The most complex…
A: Cost estimation methods means by which method variable costs and fixed costs of the business can be…
Q: Which of the following methods of cost estimation relies on only two data points?A. the high-low…
A: Cost accounting is one of the important branch of accounting, under which costs are being…
Q: Which of the following statements related to cost estimation methods is true? O a. The most complex…
A: Option c is correct.
Q: What is a mixed cost? Give an example.
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: When performing a benefit-cost analysis for multiple alternatives, calculate each B/C ratio, rank…
A: Introduction: Cost benefit analysis is generally performed by companies in order to know if the…
Q: Define a nonlinear cost function.
A: Cost Function: Cost function represents the basic change that comes in the total cost due to the…
Q: Using graphs, show how a semivariable (or mixed) cost behavior pattern can be used to approximate…
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- What is the primary difference between the two cost accounting systems regarding the accumulation of costs and the calculation of unit costs?Which of the following methods of cost estimation relies on only two data points? A. the high-low method B. account analysis C. least-squares regression D. SWOT analysis.Which of the following statements is true? Select one: O a. The most complex of the cost estimation methods is the high-low method. O b. Engineering approach approximates cost function by classifying each account as either variable or fixed based on the analyst's knowledge of how the account behaves. C The high-low method of deriving an estimated cost line uses all the data points available. O d. In approximating the cost function, the account analysis classifies costs based upon an industrial engineer's evaluation of production methods, and material, labor, and overhead requirements. O e. The high-low 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.
- Cost estimation is the process of a. Summarizing pwst costs into fixed variable components. b.Estimating the relationship between costs and the costs drivers that cause those costs. c. Documenting costs in terms of direct and indirect costs. d. All of the choicesWhich 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.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
- Required:i) Using the above information derive a cost function that can be used to predict the total production overheads cost using the high-low cost estimation method.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 answersWhich of the following are assumptions associated with the cost equation? Check all that apply. The cost equation is used to estimate costs at a variety of volume levels Cost estimates are valid within a discrete range of volumes Per unit variable costs represent the slope of a cost equation Cost equations are linear
- Which of the following represent the right process order for cost allocation: Select one: O a. Develop the cost allocation formula, calculate the indirect cost rate, then allocate cost to the cost object O b. Develop the cost allocation formula, allocate cost to the cost object, then calculate the indirect cost rate O C. Allocate cost to the cost object, develop the cost allocation formula, then calculate the indirect cost rate O d. Calculate the indirect cost rate, develop the cost allocation formula, then allocate cost to the cost objectQ) Use the high-low method to determine the estimating cost function with machine-hours as the cost driver.Which of 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 reliable method to determine the cost behavior compared to scatter-graph plot and least-squares regression methods