Methods for Analyzing Cost Behavior

To begin, let's review key terms related to methods of analyzing cost behavior. Select the

term that best matches each description.

Description

$1$ A method of determining cost behavior that utilizes

historical data that helps managers visualize the

relationship between the cost and volume of activity

$2$ A method of determining cost behavior that uses the

highest and lowest volume of activity among the

historical data points

$3$ A method of determining cost behavior using all the

historical data points; determines line of best fit

$4$ A method of determining total costs with

consideration of variable cost per unit, the volume of

activity, and total fixed costs; developed to project

future costs