The most frequently used methods of quantitative analysis include __________?
Correct answer: C. high low method
- A. variable equation
- B. low high method
- C. high low method
- D. constant equation
Explanation
The high-low method is a commonly used quantitative technique for separating mixed costs into fixed and variable components. It uses the highest and lowest activity observations, not necessarily the highest and lowest costs.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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