Costing revision Flashcards
1
Q
What is the formula for the least squares regression method ?
A
y = a +bx
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
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
