A statistical method for identifying cost behavior is the:
A) High-low method.
B) Scatter diagram method.
C) Least-squares regression method.
D) CVP charting method.
E) Composite method.

Question

Quizplus · Accepted Answer

The least-squares regression method is a statistical method for identifying cost behavior by analyzing the relationship between the dependent and independent variables through the use of regression analysis. This method provides a more accurate estimation of the cost behavior by considering all data points rather than just the highest and lowest values, as in the high-low method.

A Statistical Method for Identifying Cost Behavior Is The