Question: The high - low method provides a reasonable estimate as long as the data points are within the relevant range only uses two data points

The high-low method
provides a reasonable estimate as long as the data points are within the relevant range
only uses two data points
calculates the line based on the most extreme activity data points
uses the highest and lowest level of total cost
The high-low method provides a reasonable estimate as long as the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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 Accounting Questions!

Q:

The high low method provides a reasonable estimate of the fixed and variable cost as long as at least one of the two points falls within the relevant range the high and low points for both activity...

Q:

Drop downs for requirement one: number of months, purchase costs, quantity purchased. Req 3- plausible or non, excellent or poor fit, significant or not high low or regression all available data,...

Q:

The high-low method provides a reasonable estimate of the fixed and variable costs as long as: A) the high and low points reflect the general trend of the data. B) the high and low points for both...

Q:

QUESTION 11 A cost that changes, in total , in direct proportion to changes in activity levels is aln): O absorption cost. O contribution margin O fixed cost O variable cost. A cost that remains the...

Q:

The high-low method provides a reasonable estimate of the fixed and variable costs as long as: Otuses eight or more points (instead of simply two). O at least one of the two points falls within the...

Q:

Nuther The high - low method provides a reasonable estimate of the fixed and variable costs as long as: Multiple Choice it uses eight or more points ( instead of simply two ) . the high and low...

Q:

* Requirements 1. The computer in May's office is down, and May has been asked to immediately provide an equation to estimate the future purchase cost for part #696. May grabs a calculator and uses...

Q:

Need help with this assignment.I've attached the excel workbook that should be used to record answers and the case scenario. The case discusses the dilemma of the CFO of PSUWC Energy LLC, an energy...

Q:

Bumble Inc. has a contribution margin ratio of 45%. This month, profit before tax was $40,000 and fixed cost were $50,000. How much was the company's sales revenue? (Rounding could cause your...

Q:

Please help me! Thank you very much!It is important! 5. Stephanie Gostkowski wes manager of Wilmot Arenas, is checking to set there is any relationship between promotional costs and ticket revenues...

Q:

On Nov 7th, Omar issued short sale order to his broker for 1000 shares of International Food Co. Stock at $100. On Feb 5th, the stock price decreased to $80. The initial margin is 50%. What are the...

Q:

x+ 6x+5 1. limx-1 x+1 2. lim-1 1-x (x-5x+4) 3. limx-3 x2-2 Vx+2- Vx 4. limx-0 x+1-1 5. lim

Q:

El seor Williams Morales es residente en Costa Rica y propietario de unos locales comerciales en la Ciudad de Mxico, los cuales arrienda a la seora Juana Castro

Q:

2023 1040 form 1.Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent...