Solved The Scattergraph Method High Low Method And Chegg

Solved The High Low Method Differs From The Scattergraph In Chegg Our expert help has broken down your problem into an easy to learn solution you can count on. here’s the best way to solve it. first, understand that the scattergraph method is used to find out the market cost of a product by checking graph points. if any confusion or problem in this then comment below . please thumbs up for this solution. Scattergraphs should be prepared after high low or regression analysis is performed. plotting data on a scattergraph is an important diagnostic step. which statements regarding the high low method are true? we have an expert written solution to this problem!.

Solved Scattergraph Method High Low Method Performed Costs Chegg The main difference between the scatter graph and high low method lies with the sample data used to ascertain the cost function. the scatter graph approach uses all the data in the sample to estimate the line of best fit and hence the cost function. Compared to the high low method which considers the highest level and lowest level of activity only, the scatter graph method is more reliable since it considers all data points. however, drawing the line of best fit involves some estimation. In summary, the scattergraph method, high low method, and least squares regression are all tools that managers can use to estimate costs and make informed decisions regarding production, purchasing, tax planning, and output optimization. Using the scattergraph method: 1. plotting and line of best fit: plot the data points for miles driven (x axis) against total costs (y axis) on a graph. draw a line of best fit through the points. 2. determining slope and intercept: estimate the slope (variable cost per mile) and the intercept (fixed costs) from the line.

Solved Scattergraph Method High Low Method Performed Costs Chegg In summary, the scattergraph method, high low method, and least squares regression are all tools that managers can use to estimate costs and make informed decisions regarding production, purchasing, tax planning, and output optimization. Using the scattergraph method: 1. plotting and line of best fit: plot the data points for miles driven (x axis) against total costs (y axis) on a graph. draw a line of best fit through the points. 2. determining slope and intercept: estimate the slope (variable cost per mile) and the intercept (fixed costs) from the line. Describe how the scattergraph method breaks out the fixed and variable costs from a mixed cost. now describe how the high low method works. how do the two methods differ?. Compare and contrast the high low method and the scatter graph method for estimating the variable and fixed cost components of semi variable costs. discuss the advantages and limitations of each method and explain why companies may choose one method over the other in cost analysis. Although the scattergraph method tends to yield more accurate results than the high low method, the final cost equation is still based on estimates. the line is drawn using our best judgment and a bit of guesswork, and the resulting y intercept (fixed cost estimate) is based on this line. The percentage of the variation in cost that is explained by activity is r² when using the high low method, if the high or low levels of cost do not match the high or low levels of activity, choose the periods with the highest and lowest levels of activity and their associated costs.

Solved The Scattergraph Method High Low Method And Chegg Describe how the scattergraph method breaks out the fixed and variable costs from a mixed cost. now describe how the high low method works. how do the two methods differ?. Compare and contrast the high low method and the scatter graph method for estimating the variable and fixed cost components of semi variable costs. discuss the advantages and limitations of each method and explain why companies may choose one method over the other in cost analysis. Although the scattergraph method tends to yield more accurate results than the high low method, the final cost equation is still based on estimates. the line is drawn using our best judgment and a bit of guesswork, and the resulting y intercept (fixed cost estimate) is based on this line. The percentage of the variation in cost that is explained by activity is r² when using the high low method, if the high or low levels of cost do not match the high or low levels of activity, choose the periods with the highest and lowest levels of activity and their associated costs.