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Which of the Following Is Most Likely to Occur in an Ambiguous

question 39

Multiple Choice

Which of the following is most likely to occur in an ambiguous situation where the correct response is unclear,as opposed to a straightforward situation with no ambiguity?


Definitions:

Variable Costs

Costs that vary directly and proportionally with the level of production or sales volume, such as raw materials and direct labor costs.

Fixed Costs

Charges that stay the same, no matter the production or sales figures, such as rental fees, employee salaries, and insurance premiums.

Variable Utilities Cost

Expenses for utilities such as electricity and gas that vary in proportion to a company’s level of operation or production activity.

High-low Method

A technique used in managerial accounting to estimate fixed and variable costs associated with production.

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