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Unformatted text preview: -Use white handout (given in class) for class example.-The method defines its own relevant range.-DM are always variable costs.-DL is usually a variable cost, but not always.-OH is a mixed cost. *The most theoretically correct method is the Least Squares Regression, but not responsible for it. ~Responsible for only high-low method, scatter graphs, and accounting analysis. Learning Curves:-get better (faster) the more times it is done.-always a new situation and repetitive tasks by humans.-Next topic covered will be cumulative average.-Take home quiz handed out today will be due on Monday. White Handout Example Problem (High-Low Method) MH OH Cost High 3900 39,500 Low 3000 35,000 Change 900 hours $4500 Change in Dependent Variable = $4500 = $5 per hour Change in Independent. Variable 900 High: Total Cost 39,500 VC (3900*5) (19,500) FC $20,000 Y=a+bx Total Cost=FC+VC Y= $20,000+5x...
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This note was uploaded on 08/25/2010 for the course ACCT 327 taught by Professor Gillespie,j during the Spring '08 term at University of Delaware.
- Spring '08
- Cost Accounting