To better understand its cost structure, the company has recently appointed an external consultant to analyze its costs and identify the variable cost per seminar and the total fixed cost per month. In the preliminary meeting, the external consultant told the company's management that variable cost per seminar and total fixed cost per month could be calculated by using the high-low method as well as the least-square regression method. The company's management said that they want to see results in both methods and wonder whether and why the results might differ between these two methods. The company also wants to know the total costs for delivering 28 seminars in July.

To better understand its cost structure, the company has recently appointed an external consultant to analyze its costs and identify the variable cost per seminar and the total fixed cost per month. In the preliminary meeting, the external consultant told the company's management that variable cost per seminar and total fixed cost per month could be calculated by using the high-low method as well as the least-square regression method. The company's management said that they want to see results in both methods and wonder whether and why the results might differ between these two methods. The company also wants to know the total costs for delivering 28 seminars in July.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 5PA: Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an...

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