The correct answer is: D. I, II and III
The high-low method is a simple method of estimating cost behavior that uses the highest and lowest levels of activity to calculate the variable cost per unit and the fixed cost component. The least squares regression method is a more sophisticated method that uses all of the data points to calculate the cost function. The accounting or analytical approach is a qualitative method that uses judgment to classify costs as variable or fixed. The non-parametric method is a statistical method that does not require the data to be normally distributed.
The high-low method is the simplest and most common method of determining cost behavior. It is based on the assumption that the variable cost per unit remains constant over the relevant range of activity, and that the fixed cost remains constant over the relevant range of activity. The high-low method is easy to understand and use, and it does not require any special statistical skills. However, the high-low method can be inaccurate if the data points are not evenly distributed, or if there are outliers in the data.
The least squares regression method is a more sophisticated method of determining cost behavior. It uses all of the data points to calculate the cost function. The least squares regression method is more accurate than the high-low method, but it is more complex and requires some statistical skills.
The accounting or analytical approach is a qualitative method of determining cost behavior. It uses judgment to classify costs as variable or fixed. The accounting or analytical approach is based on the understanding of the nature of the costs and the way they are incurred. The accounting or analytical approach is less accurate than the high-low method or the least squares regression method, but it is more flexible and can be used in situations where the data is not available or is not reliable.
The non-parametric method is a statistical method that does not require the data to be normally distributed. The non-parametric method is more accurate than the high-low method and the accounting or analytical approach, but it is more complex and requires some statistical skills.