What is the scattergraph method, and why is it used? Why is a scattergraph a good first step in separating mixed costs into their fixed and variable components?
Answer to relevant QuestionsDescribe how the scattergraph method breaks out the fixed and variable costs from a mixed cost. Now describe how the high-low method works. How do the two methods differ? Some firms assign mixed costs to either the fixed or variable cost categories without using any formal methodology to separate them. Explain how this practice can be defended. Refer to the information for Pizza Vesuvio above. Pizza Vesuvio’s controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. Required: Using the high-low method, calculate ...Refer to the information for Alisha Incorporated on the previous page. However, now assume that Alisha produced 80,000 medical stints (rather than 150,000). Alisha Incorporated manufactures medical stints for use in heart ...Refer to the information for Fly High Airlines above. During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, ...
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