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Which of the Following Statements Is False Regarding Regression Analysis

Question 38

Multiple Choice

Which of the following statements is false regarding regression analysis?


A) It is used to predict the fixed and variable components of a mixed cost.
B) It is used to predict whether or not a cost is a product or period cost.
C) It is usually more accurate than the high/low method.
D) It uses statistical methods to fit a cost line through a number of data points.

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