In Determining Cost Behavior in Business, the Cost Function Is

question 89

Multiple Choice

In determining cost behavior in business, the cost function is often expressed as Y = a + bX. Which one of the following cost estimation methods should not be used in estimating fixed and variable costs for the equation? (CMA adapted)

• A) Scattergraph method.
• B) Simple regression.
• C) High and low point method.
• D) Management analysis of data.

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Definitions:

Visible Light

The portion of the electromagnetic spectrum that is visible to the human eye, ranging approximately from 390 to 700 nanometers wavelength.

Energy

The capacity to perform work or to produce changes within a system, existing in kinetic, potential, thermal, electrical, chemical, nuclear, or other various forms.

Violet

A color at the end of the visible spectrum of light, next to blue, and opposite of yellow.

Blue

A primary color perceived when the retina senses light in the wavelength range of approximately 450–495 nanometers.