The method of least squares
A) is a way to find the "best fitting" line through a set of data points.
B) is a statistical way of separating a mixed cost.
C) always produces the same cost formula when used on the same data set.
D) all of these are correct

Question

Quizplus · Accepted Answer

The method of least squares is a statistical approach used for finding the best-fitting line through a set of data points by minimizing the sum of the squares of the vertical distances of the points from the line. It is also used in cost accounting to separate mixed costs into their fixed and variable components, ensuring consistency when applied to the same dataset.

The Method of Least Squares