Which of the following methods of analyzing mixed costs can be used to estimate an equation for the mixed cost?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Which of the following methods of analyzing mixed costs can be used to estimate an equation for the mixed cost? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Regression analysis is a statistical method that can be used to estimate an equation for a mixed cost. This method involves analyzing the relationship between the total cost and the level of activity, and then fitting a regression line to the data to estimate the fixed and variable components of the mixed cost. Option B, scatterplot analysis, can be used as a visual aid to identify any patterns or relationships in the data, but it does not provide an equation for the mixed cost. Option C, high-low method, is a simple cost estimation technique that uses only two data points (highest and lowest activity levels), which may not accurately represent the true relationship between cost and activity. Option D, account analysis, involves breaking down the mixed cost into its fixed and variable components based on the accountant's judgment or knowledge, which may not be accurate or objective.

Which of the Following Methods of Analyzing Mixed Costs Can