Question: The highlow method of analyzing mixed costs uses only two observation points: the high and the low points of activity. Are these always the best

The high–low method of analyzing mixed costs uses only two observation points: the high and the low points of activity. Are these always the best points for prediction purposes? Why or why not?

Step by Step Solution

★★★★★

3.39 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

No these are not always the best points of observation First t... 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

Document Format (1 attachment)

146-B-C-A-O (62).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Using the high low method 1 Estimate the variable cost per wedding 2 Compute the total fixed cost per month 3 Write out the equation for the cost structure of Something New explain each variable 4...

The formula for analyzing mixed costs is y = a + bx. Explain what each term represents.

Why would high transaction costs or imperfect information tend to prevent price-taking behavior?

7. The high-low method of analyzing mixed costs uses only two observation points: the high and the low points of activity. Are these always the best points for prediction purposes? Why or why not?

1. What is the difference between variable and fixed costs? Also, explain how the total variable cost and total fixed cost is affected by increasing the number of units produced? What happens to the...

1. What is the difference between variable and fixed costs? Also explain how the total variable cost and total fixed cost is affected by increasing the number of units produced? What happens to the...

1-The high-low method of analyzing mixed costs uses only two observation points: the high and low points of activity. Are these always the best points for prediction purposes? Why or why not? 2-What...

The high-low method of analyzing mixed costs uses only two observation points: the high and low points of activity. Are these always the best points for prediction purposes? Why or why not? Discuss...

The high-low method of analyzing mixed costs uses only two observation points: the high and the low points of activity. Are these always the best points for prediction purposes? Why or why not

Accounting help needed please. This is a 25-30 question multiple choice quiz. In an automobile manufacturing company, manufacturing overhead includes all manufacturing costs except for those...

You are the manager of a business that is losing money due to COVID and the CEO is pushing you hard to fix things. You have many employees who are also effected by COVID. Your financial statements...

Big Horn Mining Co. acquired mineral rights for $90,000,000. The mineral deposit is estimated at 250,000,000 tons. During the current year, 30,000,000 tons were mined and sold. a. Determine the...

E17.27 (LO 3) (Warranties) Celic SA manufactures and sells computers, which include an assurance-type warranty for the first 90 days. Celic offers an optional extended coverage plan under which it...

1 Identify two other ways in which Leffe and Peroni could be positioned.

(Appendix) What variances can be computed for direct material and direct labor when some materials or labor inputs are substitutes for others? What information does each of these variances provide?...

Why do managers care about the utilization of capacity? Are they controlling costs when they control utilization? LO.1

What is meant by the process of management by exception? How do man agers use a standard cost system in their efforts to control costs? LO.1

1.The GMAT is approximately normally distributes with a mean of 527 and a standard deviation of 112. What is the probability of an individual scoring above 500 on the GMAT? 2.How high must an...

If Smolinski, Incorporated, were an all-equity company, it would have a beta of 1.05. The company has a target debt-equity ratio of .40. The expected return on the market portfolio is 10 percent and...

Meridian Manufacturing, Inc. ' s stock has had the following annual returns over the past 5 years: + 1 4 . 2 % ; - 9 . 8 % . + 3 2 . 6 % , - 2 9 . 8 % , and + 2 7 . 9 % . Using the proper method for...