Which Characteristic Is True of the Scatter Graph Method, High-Low

question 10

Multiple Choice

Which characteristic is true of the scatter graph method, high-low method, and regression analysis?

• A) All methods will produce the same estimate of variable and fixed costs.
• B) All methods use historic data to estimate variable and fixed costs.
• C) All methods use only two data points in analyzing a mixed cost.
• D) None of these is true.

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Definitions:

Classification

The process of grouping objects or information based on shared qualities or characteristics.

Fevers

A rise in body temperature above the normal range, often a symptom of infection or illness.

Boiling

The rapid vaporization of a liquid, which occurs when a liquid is heated to its boiling point, the temperature at which the vapour pressure of the liquid equals the pressure exerted on the liquid by the surrounding environmental pressure.

Celsius

A scale of temperature on which water freezes at 0° and boils at 100° under standard conditions.