Which of the following cost estimation methods finds the variable portion of a mixed cost before calculating the fixed portion?

Which of the following cost estimation methods finds the variable portion of a mixed cost before calculating the fixed portion?

A Scattergraph
B High-Low
C Account analysis
D Linear regression
E engineering approach


Answer: B

A disadvantage of the high-low method of cost analysis is that it:

A typically results in totally inaccurate cost formula
B is too time consuming to apply
C uses only two data points, which may not be representative of normal conditions
D relies totally on the judgement of the person performing the cost analysis


Answer: C

In the standard regression equation of y=a+bx, the letter a is best described as the:

A independent variable
B dependent variable
C slope of the equation
D intercept of the equation


Answer: D