Question

Which of the following statements is false?

A. The high/low method is the most accurate method of estimating fixed and variable cost.
B. A visual scatter graph is more precise than regression analysis when drawing a line that best fits a data set.
C. The R Square produced in regression analysis represents the estimated variable cost per unit.
D. All of the statements are false.

Answer 1

The false statement is that the high/low method is the most accurate method of estimating fixed and variable cost.

Step-by-step explanation:

The false statement among the options is A. The high/low method is the most accurate method of estimating fixed and variable cost.

The high/low method is a cost estimation technique that uses the highest and lowest observed costs to estimate fixed and variable costs. While it can be a quick and simple method, it is not the most accurate method. Regression analysis, on the other hand, is a more precise technique for estimating costs as it uses the relationship between the independent and dependent variables to determine the best-fit line.