________ is a simple method for measuring a linear cost function from past cost data, focusing on two representative points.
A) Engineering analysis
B) Account analysis
C) The high-low method
D) The least-squares regression method

Question

Quizplus · Accepted Answer

The high-low method involves selecting two data points (the highest and lowest levels of activity) and using them to determine the slope (variable cost per unit) and intercept (total fixed cost) of the linear cost function. This method is simple and easy to apply, but may not provide the most accurate estimate of the cost function.

________ Is a Simple Method for Measuring a Linear Cost