Advantages of high-low method
(i). Method is easy to use
(ii). Not many data are needed
(iii). Visually it gives the general direction of the trend
Disadvantages
(i). Choice of the high and low points is subjective
(ii). Method does not use all available data
(iii). Cannot be used for more than one independent variable
(iv). Not possible to defend the results statistically
(v). If the two points are outliers, the predictive equation will be wrong.
(vi). Method may not be reliable
marto answered the question on February 15, 2019 at 08:54
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The management of Limuru processing Company Ltd. Wishes to obtain better cost estimates to
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(Solved)
The management of Limuru processing Company Ltd. Wishes to obtain better cost estimates to
evaluate the company's operations more effectively
Date posted:
February 15, 2019
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Answers (1)
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State three disadvantages of using the high – low method for estimating costs
(Solved)
State three disadvantages of using the high – low method for estimating costs
Date posted:
February 15, 2019
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Answers (1)
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Briefly explain the following cost estimation methods:
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(Solved)
Briefly explain the following cost estimation methods:
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Date posted:
February 15, 2019
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Answers (1)
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(Solved)
Jitegemee Company Ltd. Carries on its operations in Isiolo. In the recent, the Company has been
experiencing trading difficulties and is currently operating at 50% production capacity. For the
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Date posted:
February 15, 2019
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February 15, 2019
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Date posted:
February 15, 2019
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Answers (1)
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Date posted:
February 15, 2019
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Differentiate between a bin card and a stores ledger card.
Date posted:
February 15, 2019
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(Solved)
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Date posted:
February 15, 2019
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Explain two advantages of using simple linear regression method for cost estimation.
(Solved)
Explain two advantages of using simple linear regression method for cost estimation.
Date posted:
February 15, 2019
.
Answers (1)
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Briefly explain the following terms as used in cost accounting:
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(Solved)
Briefly explain the following terms as used in cost accounting:
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Date posted:
February 15, 2019
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Answers (1)
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Differentiate between the following sets of terms:
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(Solved)
Differentiate between the following sets of terms:
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Date posted:
February 15, 2019
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Answers (1)
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The Luxury Hotels Ltd is used for conference bookings and private bookings. The conference
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(Solved)
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:
1. Variable cost of accommodating each guest is Sh. 1,750
2. Variable cost per week per room available is Sh. 5,600
3. The general fixed cost for private bookings per week is Sh. 8,100
4. The hotel charges Sh. 3,000 per person per night for accommodation for private guest bookings.
5. The hotel has been experiencing a high rate of staff turnover over the last 12 months.
6. Some of the costs for private guest bookings vary with the number of guests, regardless of the
length of their stay, while others vary with the number of rooms available in any week.
Required:
a) Total cost per guest per night for private guest bookings over the ten week period
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Date posted:
February 15, 2019
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Answers (1)
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Fair Price Limited produces a single product "Zed': The store‟s manager has provided the
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Date posted:
February 15, 2019
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Distinguish between the following terminologies as used in cost accounting:
i) Relevant range and relevant costs.
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(Solved)
Distinguish between the following terminologies as used in cost accounting:
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ii) Opportunity costs and discretionary costs.
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Date posted:
February 15, 2019
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Answers (1)
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Distinguish between 'committed fixed costs' and 'discretionary fixed costs'.
(Solved)
Distinguish between 'committed fixed costs' and 'discretionary fixed costs'.
Date posted:
February 15, 2019
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Answers (1)
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Explain the meaning of the following term in the context of cost accounting:
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(Solved)
Explain the meaning of the following term in the context of cost accounting:
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Date posted:
February 15, 2019
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Answers (1)
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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
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Answers (1)
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Afya Bora Health Centre has a capacity of 20 beds. The following information relates to the
centre's operations for the year ended 30 June 2014:
(Solved)
Afya Bora Health Centre has a capacity of 20 beds. The following information relates to the
centre's operations for the year ended 30 June 2014:
Date posted:
February 15, 2019
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Answers (1)
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Cost accounting is often described as the provision of information required by management for
specific purposes'
Required:
State six of these specific purposes.
(Solved)
Cost accounting is often described as the provision of information required by management for
specific purposes'
Required:
State six of these specific purposes.
Date posted:
February 15, 2019
.
Answers (1)