Multiple Choice
Which statement is FALSE regarding the high-low method to approximate a linear cost function?
A) The first step is to plot the historical data points on a graph.
B) Outliers should be removed from the analysis.
C) Draw a line between the representative high and low points.
D) The point at which the line intersects the Y-axis is the estimate of variable costs.
Correct Answer:
Verified
Correct Answer:
Verified
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