Which of the following statements is true? Select one: one: a. The most complex of the cost estimation methods is the high-low method.
Which of the following statements is true? Select one: one: a. The most complex of the cost estimation methods is the high-low method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Which of the following statements is true? Select
one:
a. The most complex of the cost estimation
methods is the high-low method.
b. 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.
c. 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.
d. 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.
e. The high-low method of deriving an
estimated cost line uses all the data points
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