In which of the following methods "Line of best fit" is drawn to find out "variable overheads" and "fixed overheads" out of "Semi-Variable Overheads"?

CS Executive · Cost and Management Accounting · PYQS · December 2019
In which of the following methods "Line of best fit" is drawn to find out "variable overheads" and "fixed overheads" out of "Semi-Variable Overheads"?
(A) Comparison by period or level of activity method
(B) Analytical Method
(C) High & Low Point Method
(D) Least Square Method

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Overheads

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