One of the simplest methods to measure a linear cost function from past data is the _____.
A)regression analysis method
B)high?low method
C)least?squares regression method
D)visual-fit method

Question

Quizplus · Accepted Answer

The high-low method is the simplest method of estimating a linear cost function from past data. It involves selecting the highest and the lowest activity levels and then computing the variable cost per unit using the change in cost between the high and low activity levels.

One of the Simplest Methods to Measure a Linear Cost