Using the High-Low Method,the Variable Rate of a Mixed Cost

question 89

Multiple Choice

Using the high-low method,the variable rate of a mixed cost equals

• A)total cost at high point - (variable rate ´ output at high point)
• B)total cost at high point - (variable rate ´ output at low point)

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Definitions:

Sales Uncollected

The amount of sales that have been made but not yet paid for by customers, also known as accounts receivable.

Inventory Turnover

A financial metric indicating how many times a company has sold and replaced its inventory over a certain period, often used to assess efficiency.

Internal Users

Individuals within an organization who use financial information to make decisions, including managers, employees, and internal auditors.

Financial Information

Data regarding the financial status, operations, and cash flows of a business, useful for decision-making purposes.