When predicting costs at other volumes using a cost equation derived from either the high-low method or regression analysis, managers should consider
A)outliers.
B)general inflation.
C)seasonality.
D)all of the above.

Question

Quizplus · Accepted Answer

Managers should consider outliers, general inflation, and seasonality when predicting costs using cost equations derived from either the high-low method or regression analysis. Outliers can greatly affect the results of the analysis, and general inflation and seasonality can cause changes in costs that are not related to the specific factors being analyzed in the equation. Therefore, all of these factors should be taken into consideration to ensure accurate and reliable cost predictions.

When Predicting Costs at Other Volumes Using a Cost Equation