Which of the following statements related to cost estimation methods is false? O 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 false? O 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9648868-f572-4d87-953b-3ff67a209cb2%2Fc3dd9555-ec8c-40c4-b43e-f1d6c92f1052%2Fbudnq6r_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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