Respond to the following questions in your own words.

I’m studying for my Accounting class and don’t understand how to answer this. Can you help me study?

Your responses should include specific examples and should incorporate concepts and terms from Chapter 2 in your textbook.

1. What are the advantages and disadvantages of using a graphical, the high-low, and the regression method for estimating the cost behavior of an organization? Under what circumstances would one use the high-low method over the regression method.

2. What are the steps in constructing a regression model? What specific tests would one conduct to establish the significance of the regression coefficients and the estimated regression line

3. What is the difference between first and second-order tests? Why is it necessary to do both sets of tests to establish the significance of an estimated regression model?

4. Define elasticity. What is the difference between a point and an arc elasticity? Give an example of each.

Writing Requirements

• APA format,
• 3–4 pages in length (excluding cover page, abstract, and reference list)