A statistical method for identifying cost behavior is the:
A)Scatter diagram method.
B)High-low method.
C)Composite method.
D)CVP charting method.
E)Least-squares regression method.

Question

Quizplus · Accepted Answer

The least-squares regression method is the best statistical method for identifying cost behavior as it uses all the data points to identify the relationship between costs and activity levels. It provides a more accurate and reliable estimation of fixed and variable costs.

A Statistical Method for Identifying Cost Behavior Is The