Which of the following statements is true? Selectone:a. The most complex of the cost estimationmethods is the high-low method.b. In approximating the cost function, theaccount analysis classifies costs based uponan industrial engineer's evaluation ofproduction methods, and material, labor, andoverhead requirements.c. The high-low method is used to derive anestimated line of cost behavior by graphicallyconnecting the two cost amounts identifiedwith the highest and lowest volume levels.d. Engineering approach approximates costfunction by classifying each account as eithervariable or fixed based on the analyst'sknowledge of how the account behaves.e. The high-low method of deriving anestimated cost line uses all the data points

High-low method: It is the method of estimating the variable cost per unit and the fixed costs by…

Answered: Which of the following statements is…

Which of the following statements is true? Select one: one: a. The most complex of the cost estimation methods is the high-low method.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 16MC: Which of the following methods of cost estimation relies on only two data points? A. the high-low...

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Question

Which of the following statements is true? Select
one:
a. The most complex of the cost estimation
methods is the high-low method.
b. In approximating the cost function, the
account analysis classifies costs based upon
an industrial engineer's evaluation of
production methods, and material, labor, and
overhead requirements.
c. The high-low method is used to derive an
estimated line of cost behavior by graphically
connecting the two cost amounts identified
with the highest and lowest volume levels.
d. Engineering approach approximates cost
function by classifying each account as either
variable or fixed based on the analyst's
knowledge of how the account behaves.
e. The high-low method of deriving an
estimated cost line uses all the data points

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