Question: What methods are available for separating a mixed cost into its fixed and variable elements using past records of cost and activity data? Which method

What methods are available for separating a mixed cost into its fixed and variable elements using past records of cost and activity data? Which method is considered to be most accurate? Why?

Step by Step Solution

★★★★★

3.49 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The highlow method the scattergraph method and the leastsquares regression method are used to ana... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Managerial Accounting Questions!

What computational methods are available for separating the fixed and variable components of semi variable costs?

Lukes Gameday Company sells a package of goods and services to its customers. The package includes four FCS Championship football tickets, a reserved parking space, a pregame party, and four pregame...

What methods are available to gather relevant facts? Why is it important to be aware of all the facts? What are some of the challenges presented in gathering facts?

What methods are available for separating a mixed cost into its fixed and variable elements using past records of cost and activity data? Which method is considered to be most accurate? Why?...

Job-order costing is used when essentially homogeneous products are produced on a continuous basis. Process costing works well whenever different products pass through a series of processes and...

5. Dubey Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Telecommunications and Administration, and...

1. A company's break-even point in sales revenue is $200,000. Its variable expenses are 60% of sales. What level of sales revenue would this company need in order to achieve an operating profit of...

1. During the month of September, direct labor cost totaled $13,400 and direct labor cost was 40% of prime cost. If total manufacturing costs during September were $73,000, the manufacturing overhead...

1. During the month of September, direct labor cost totaled $9,150 and direct labor cost was 30% of prime cost. If total manufacturing costs during September were $78,400, the manufacturing overhead...

SHOW PROPER SOLUTIONS. Problem 2: Alejandro Company is preparing a flexible budget for next year and requires a breakdown of the factory maintenance cost into the fixed and variable elements. The...

Is it possible to value companies by calculating the present value of the EVA (Economic Value Added)? Which are the necessary hypotheses so that such valuations provide similar results to discounting...

What are the strengths of the annual rate of return approach? What are its weaknesses?

In offering life annuities, what risk is the insurer pooling? Question 3 options: a ) excessive longevity b ) premature death c ) bad investment performance d ) injury or illness

4. Calculate the percent increase in real GDP between 2008 and 2013 for each country.

A company has the following incomplete production budget data for the first quarter: In the previous December, ending inventory was 200 units, which was the minimum required, at 10% of projected...

The controller of Ultramint Company wishes to improve the companys control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2015: June 30,...

All sales of Gamma Electronics Supply are made on credit. Sales are billed twice monthly, on the 10th of the month for sales made in the last half of the prior month, and on the 20th of the month for...

can you help step-by-step so I can enter into Excel are not supported in Tears and have been disabled A1 B E G H K L M N 1 2 3 D 21. Rate of Return. A bond is issued with a coupon of 4% paid...

Assets, Inc., plans to issue $8 million of bonds with a coupon rate of 7 percent, a par value of $1,000, semiannual coupons, and 20 years to maturity. The current market interest rate on these bonds...

Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2012. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before...