Costing revision Flashcards

1
Q

What is the formula for the least squares regression method ?

A

y = a +bx

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2
Q

What is the formula for the high-low method ?

A

High y - Low y / High x - Low x = gradient (b) which is your variable cost

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3
Q

How do you determine fixed costs when using the high-low method ?

A

But b in the equation y = a + bx at either the highest or lowest point

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