Which Statement Is FALSE Regarding the High-Low Method to Approximate

question 7

Multiple Choice

Which statement is FALSE regarding the high-low method to approximate a linear cost function?

• A)The first step is to plot the historical data points on a graph.
• B)Outliers should be removed from the analysis.
• C)Draw a line between the representative high and low points.
• D)The point at which the line intersects the Y-axis is the estimate of variable costs.

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