Disadvantages of using high- low method
1. This method ignores all cost observations other than the observations for the lowest and
highest activity levels
2. Cost observations at the extreme ranges of activity levels are not always typical of normal
operating conditions
3. The method can give inaccurate cost estimates and may reflect abnormal rather than
normal cost relationships.
marto answered the question on February 15, 2019 at 08:47
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(i). High-low method.
(ii). Simple regression method.
(Solved)
Briefly explain the following cost estimation methods:
(i). High-low method.
(ii). Simple regression method.
.
Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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The Luxury Hotels Ltd is used for conference bookings and private bookings. The conference bookings include bookings for rooms each week while the remaining rooms are used for private guest bookings.
Additional information:
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2. Variable cost per week per room available is Sh. 5,600
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
- Understanding of cost behavior patterns is important in making financial planning and cost
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Required:
In relation to the above statement, describe three ways in which costs...(Solved)
Understanding of cost behavior patterns is important in making financial planning and cost
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Required:
In relation to the above statement, describe three ways in which costs might be classified
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Date posted: February 15, 2019. Answers (1)
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Afya Bora Health Centre has a capacity of 20 beds. The following information relates to the
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Date posted: February 15, 2019. Answers (1)
- Cost accounting is often described as the provision of information required by management for
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Required:
State six of these specific purposes.(Solved)
Cost accounting is often described as the provision of information required by management for
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Date posted: February 15, 2019. Answers (1)
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Daniel Mutiso, the Cost Accountant of Abra Ltd. feels that he is getting overworked and has
recommended that a management accountant be employed to take up other responsibilities in the
organization.
However, the management of the company equally argues that the work is the same and that a
decision to hire a management accountant is against their cost reduction policy.
Required:
In the light of the above statement, explain to the management three differences between management
accounting and cost accounting to help them make a fair decision.
Date posted: February 15, 2019. Answers (1)