Question: Explain the term relevant range and why it is important in estimating total cost. How are variable and fixed costs determined using the high-low method

  1. Explain the term relevant range and why it is important in estimating total cost.
  2. How are variable and fixed costs determined using the high-low method of cost estimation?
  3. Why is scatter diagram helpful when used in conjunction with other methods of cost estimation?
  4. Identify two advantages of least-squares regression analysis as cost-estimating technique.

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