The method of cost estimation that fits a cost line between two data points is:
A) least squares regression.
B) high-low.
C) account classification.
D) multiple regression.

Question

Quizplus · Accepted Answer

The high-low method of cost estimation fits a cost line between the highest and lowest activity levels, using these two data points to estimate fixed and variable costs. This method is simpler than regression analysis and does not require complex statistical calculations.

The Method of Cost Estimation That Fits a Cost Line