Which of the following is a method of estimating costs?
A)Break-even analysis
B)Bar charts
C)Financial analysis
D)The high low method

Question

Quizplus · Accepted Answer

The high low method is a common method used to estimate costs. It involves looking at the highest and lowest levels of activity in a given period, and using this data to estimate fixed and variable costs. The other choices, break-even analysis, bar charts, and financial analysis, are not necessarily methods of estimating costs. Break-even analysis is used to determine the volume of sales needed to cover costs, while bar charts are a visual display of project tasks and timelines. Financial analysis is a broader category which includes various tools and methods for analyzing financial data, but not necessarily for estimating costs in isolation.

Which of the Following Is a Method of Estimating Costs