Question: Why would regression analysis provide a more accurate cost formula than the high low method for a mixed cost?

Why would regression analysis provide a more accurate cost formula than the high– low method for a mixed cost?

Step by Step Solution

★★★★★

3.41 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The regression method has the major advantage of using ... View full answer

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

Document Format (1 attachment)

Word file Icon

146-B-C-A-O (65).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Q:

Why would regression analysis provide a more accurate cost formula for a mixed cost than the high-low method?

Q:

Georgia bleadown company uses the high low method to analyze production costs. The following information related to the production data for the first six months of the year. What is the estimated...

Q:

Why do activity-based cost drivers provide more accurate allocations of overhead in an automated manufacturing environment?

Q:

26. (Appendix) Why would regression analysis provide a more accurate cost formula for a mixed cost than the high-low method?

Q:

Why would regression analysis provide a more accurate cost formula for a mixed cost than the high-low method would? LO1.

Q:

Why would a regression analysis provide a more accurate cost formula than the high-low method for a mixed cost?

Q:

Why would regression analysis provide a more accurate cost formula for a mixed cost than the high-low method? LO1

Q:

Sox Company has the followingtwelve months of cost data. Months Units Costs Jan 100 $ 30,700 Feb 120 $ 35,900 Mar 140 $ 41,200 Apr 140 $ 39,200 May 180 $ 49,100 Jun 160 $ 44,700 Jul 175 $ 48,300 Aug...

Q:

True Orchard, a cooperative of organic family- owned farms outside of Portland, Oregon, has recently started a fresh produce club to provide support to the groups member farms and to promote the...

Q:

there is an excel sheet but it wont let me upload it i would be happy to email it some how D 1 2 3 TTT 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39...

Q:

The lattice energies of KBr and CsCl are nearly equal (Table 8.2).What can you conclude from this observation? TABLE 8.2 Lattice Energies for Some Ionic Compounds Lattice Energy Lattice Energy...

Q:

Suppose C is the interval of real numbers (0.5). Suppose Cn for n = 1,2,3,.... Then ? (1-n-,2+n-) and D = (n-,3-n-), XX7 UCn= (0,3); U1D = (0, 3); C = [1,2] D=(1,2). (1.2.14) (1.2.15)

Q:

4 During 2017, Learphart Corporation contributes $35,000 to its qualified pension plan. Normal cost for this year is $15,000, and the amount necessary to pay retirement benefits on behalf of employee...

Q:

1 What is the structure of the buying organizations purchasing procedures: centralized, decentralized, flexible, or inflexible?

Q:

What is a standard cost card? What information does it contain? How does it relate to a bill of materials and an operations flow document? LO.1

Q:

(Revising and analyzing an operating budget) Lopez Agency, a division of Chalmette Industries (Cl), offers consulting services to clients for a fee. Cl's corporate management is pleased with the...

Q:

(Preparing and analyzing a budget) Randazzo Ridenour & Co., LLP, a local accounting firm, has a formal budgeting system. The firm has five partners, two managers, four seniors, two secretaries, and...

Q:

ANSWER THE FOLLOWING. IMAGE 1 IS QUESTION 1, IMAGE 2 IS QUESTION 2 , IMAGE 3 IS QUESTION 3 b) The discrete random variable X has the probability function k(x2 9) x = 4,5,6 0 otherwise Where k is a...

Q:

Please, solve with Excel. You are the financial adviser to three individuals, a Young person with high risk tolerance, a Middle aged person with medium risk tolerance and an old person with low risk...

Q:

3. If the generally interest rates in the economy decrease significantly but the rate on a consumer's ARM loan remains high due to floors, what is the borrower likely to do in the absence of a...