Three Popular Methods of Identifying Variable and Fixed Components of a Cost

question 99

Essay

Three popular methods of identifying variable and fixed components of a cost are the scattergraph method, the high-low method and regression analysis.Compare and contrast these three methods.

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Definitions:

General Partner

An owner of a partnership who has unlimited personal liability for the debts and obligations of the partnership.

Limited Liability Limited Partnership

A form of partnership that offers limited liability to some partners (limited partners) and allows others (general partners) to operate the partnership with limited liability as well.

General Partners

Individuals in a partnership who are responsible for managing the business and are personally liable for its debts.

Liability

Refers to the state of being legally responsible for something, particularly in reference to debts or legal obligations.