ACC406 CH. 3

Question 1

HIGH-LOW METHOD=
(STEP 1: VARIABLE RATE)

Answer 1

HIGH COST - LOW COST / HIGH OUTPUT - LOW OUTPUT

Question 2

LEAST SQUARE METHOD=
(STEP 1)

Answer 2

Y INTERCEPT (COST)
X INTERCEPT (VARIABLE RATE)

Question 3

SCATTER PLOT METHOD=
(STEP 1)

Answer 3

High point Cost (X-axis) - Low point Cost (X-axis) / High output (Y-axis) - Low output (Y-axis)

Question 4

FIXED COST =
(STEP 2)

Answer 4

HIGH COST - (VARIABLE RATE * HIGH OUTPUT)
(CHOSE HIGH OR LOW DEPENDING ON QUESTION)

Question 5

TOTAL COST =
(STEP 3)

Answer 5

FIXED COST + ( VARIABLE RATE * Output OR WHATS GIVEN)