Which of the following is true about the visual fit method?
A. Assuming the relationship between total cost and activity is (mostly) linear the visual fit method is an approximation of total fixed costs and variable costs per unit.
B. The visual fit method is the most objective way to fit a line to cost data using a scattergraph.
C. If the scattergraph shows there is not a linear relationship between total costs and activity, the visual fit method can give a close approximation of total fixed costs and variable costs per unit.
D. Although a scattergraph can be created by hand, the visual fit method of determining total fixed costs and variable costs per unit must be completed by computer.
Answer: A
You might also like to view...
When designing the data collection activity, which type of data should be avoided?
a. data that is relevant b. data that is efficient c. data that is redundant d. data that is accurate
A company issued $300,000 of 20-year, 8 percent bonds at 96. If interest is paid semiannually, the entry to record the amount of bond interest expense recorded (assuming the straight-line method of amortization) on any interest date is:
A) Bond Interest Expense 12,000 Cash 12,000 B) Bond Interest Expense 24,300 Unamortized BondDiscount 300Cash 24000 C) Bond Interest Expense 23,700 Cash 23,700 D) Bond Interest Expense 12,300 Unamortized BondDiscount 300Cash 12000
List some helpful investment tips
What will be an ideal response?
When a creditor extends credit to a debtor, to protect itself, the creditor should:
a. take a security interest in an asset owned by the debtor b. make sure to attach any security interest it takes c. make sure that its security interests are not perfected d. take a security interest in an asset owned by the debtor and make sure to attach any security interest it takes e. take a security interest in an asset owned by the debtor and make sure to attach any security interest it takesand make sure the security interests are not perfected