Which of the Following Methods of Estimating Future Costs Can

question 46

Multiple Choice

Which of the following methods of estimating future costs can be used when only one period of data is available?

• A) Scatter plot
• B) High-low method
• C) Analysis at the account level
• D) Regression analysis

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Definitions:

Accounts Payable

Short-term liabilities or money owed by a company to its creditors or suppliers for goods and services that have been delivered but not yet paid for.

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for the primary purpose of selling to customers.

General Journal

A primary accounting record used to document all business transactions in chronological order.

Error In Billing

Mistakes or inaccuracies in the amount charged on an invoice or billing statement.