QuestionMay 28, 2025

True or False Question The visual-fit method provides a more precise estimate of fixed and variable costs than either high-low or least-squares regression. True False

True or False Question The visual-fit method provides a more precise estimate of fixed and variable costs than either high-low or least-squares regression. True False
True or False Question
The visual-fit method provides a more precise
estimate of fixed and variable costs than either high-low or least-squares regression.
True
False

Solution
4.7(143 votes)

Answer

False Explanation 1. Compare Methods The visual-fit method is subjective and relies on visual judgment, while high-low and least-squares regression methods use mathematical calculations to estimate costs. 2. Assess Precision Least-squares regression provides the most precise estimates by minimizing the sum of squared differences between observed and estimated values.

Explanation

1. Compare Methods<br /> The visual-fit method is subjective and relies on visual judgment, while high-low and least-squares regression methods use mathematical calculations to estimate costs.<br />2. Assess Precision<br /> Least-squares regression provides the most precise estimates by minimizing the sum of squared differences between observed and estimated values.
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