Answer the following statements true (T) or false (F)

1. There are only two methods to derive an estimated line of cost behavior; the high-low
method and the scatter diagram.
2. Scatter diagrams plot volume (units) on the vertical axis and cost on the horizontal axis.
3. Scatter diagrams plot volume (units) on the horizontal axis and cost on the vertical axis.
4. To determine the slope of the variable cost from a scatter diagram, divide the change in units by the change in cost.
5. To determine the slope of the variable cost from a scatter diagram, divide the change in cost by the change in units.


1. FALSE
2. FALSE
3. TRUE
4. FALSE
5. TRUE

Business

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investors about future earnings under which of the following dividend policy theories? A) the expectations theory B) the information effect C) the residual dividend theory D) the clientele effect

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