The most frequently used methods of quantitative analysis include __________?

Correct answer: B. high low method

  • A. variable equation
  • B. high low method
  • C. low high 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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