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

question 65

Multiple Choice

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

• A) The second step in the high-low method is to plot the historical data points on a graph.
• B) Outliers should not be removed from the analysis.
• C) Draw a line through all the data points using judgment to fit the line as close as possible to all the plotted points.
• D) The point at which the line intersects the Y-axis is the estimate of fixed costs.