Which of the Following Statements Is Not True

question 10

Multiple Choice

Which of the following statements is not true?

• A)The high-low method is a non-statistical method; regression analysis is a statistical method.
• B)The high-low method and regression analysis use only two observations to estimate fixed and variable costs.
• C)The mechanics of regression analysis are complex; the mechanics of the high-low method are simple.
• D)Both A and B are untrue.
• E)A, B and C are untrue.

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Definitions:

Dollar Sales

The total revenue generated from the sale of goods or services, calculated in dollar terms.

Break-Even

A financial situation in a business where the income equals the costs, leading to neither profit nor loss.

Monthly

Pertaining to something that occurs, is calculated, or reported every month.

Variable Expense

An expense that changes in proportion to production output or sales.