(Appendix 2A)CPE for CPAs, Inc

question 8

Essay

(Appendix 2A)CPE for CPAs, Inc. , provides continuing professional education for certified public accountants.The company is relatively new and management is seeking information regarding the company's cost structure.The following information has been gathered for the first six months of the current year: Required:
a.Using the high-low method, estimate the variable cost per seminar and the total fixed cost per month.
b.Using the least-squares regression method, estimate the variable cost per seminar and the total fixed cost per month.

---

Definitions:

External Users

Individuals or entities outside a company who use financial information to make decisions about the company, such as investors, creditors, and regulatory agencies.

Internal Users

Individuals within an organization, such as management and employees, who use financial information to make decisions regarding the operation of the company.

Ethical Violations

Ethical violations refer to actions or behavior that breach established codes of conduct or morality within a particular profession or community.

Relevance

The characteristic of financial information that makes it capable of influencing the decision-making process by helping users evaluate past, present, or future events.