There Are Only Two Methods to Derive an Estimated Line

question 151

True/False

There are only two methods to derive an estimated line of cost behavior; the high-low method and the scatter diagram.

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Definitions:

Market Price

The prevailing cost at which a commodity or service may be purchased or traded in a market.

Acid-Test Ratio

A financial metric that measures a company’s ability to pay off its current liabilities with its quick assets (cash, marketable securities, and receivables).

Financial Data

Quantitative information about an entity's financial performance, including balance sheets, income statements, and cash flow statements.

Current Ratio

A financial metric that evaluates a corporation's capacity to meet its obligations due within a year by comparing its current assets to its current liabilities.