UNIT 19 study guide - High-low method cost analysis method...

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UNIT 19 1) Methods of Cost Analysis - Engineering method The fixed and variable components of the cost are determined by a relatively perfect cause-effect relationship. Contractual agreements The engineers who designed the activity Nature of the cost and its driver Easily ascertainable cause-effect relationship - Scatterplot
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Unformatted text preview: - High-low method: cost analysis method which uses only two points to determine the cost structure- Regression: cost analysis method which can be skewed the most by an anomalous outlier, resulting in incorrect cost figures Used to make predictions so the company can make informed decisions....
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