Discusion Questions – Cause and Effect & High-Low Method and Regression Analysis

 

“Cause and Effect” Please respond to the following:

 

•From the e-Activity, compare and contrast the cause and effect of at least one cost driver in the company you researched with a cost driver at a local company in your area. •Determine the repercussions of selecting an incorrect cost driver on the local company you identified and provide an example to support your discussion.

 

High-Low Method and Regression Analysis” Please respond to the following:

 

•Create a scenario where using the high-low method results in flawed decisions for pricing or performance evaluations. •Determine the benefits of using the regression analysis in the scenario created above