?

Managerial Accounting

Free Version

Upgrade subject to access all content

Moderate

Comparing High-Low Method and Regression

MGRACT-NGMCGK

Regression analysis is considered superior to the high-low method of cost estimation because:

A

the high-low method is based on more complex mathematics as compared to regression analysis.

B

the high-low method depends on only two observations, and all the other data are discarded.

C

regression analysis always produces higher estimates of the parameters resulting in higher cost estimates.

D

regression always produces lower estimates of the parameters resulting in lower cost estimates.