COST ACCOUNTING
COST BEHAVIORS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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high-low activity
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graph
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simple regression
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cost volume profit analysis
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Detailed explanation-1: -Three methods of separating a mixed cost into its fixed and variable components are commonly used: the high-low method. the scattergraph method. the method of least squares.
Detailed explanation-2: -Advantages of the High-Low Method The high-low method is an easy way to segregate fixed and variable costs. By only requiring two data values and some algebra, cost accountants can quickly and easily determine information about cost behavior.
Detailed explanation-3: -Mixed costs need to be classified as fixed costs and variable costs for CVP Analysis.
Detailed explanation-4: -There are three methods for separating a mixed cost into its fixed and variable components: High-low method. Scatter-graph method. Method of least squares.