Which method of cost data analysis involves approximating a linear cost relationship based on the extremes of production volume?

Name: Which method of cost data analysis involves approximating a linear cost relationship based on the extremes of production volume?
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Question

Quizplus · Accepted Answer

The high-low method involves analyzing the highest and lowest levels of activity (production volume) to estimate the fixed and variable components of a cost, thereby approximating a linear cost relationship based on these extremes.

Which Method of Cost Data Analysis Involves Approximating a Linear