When Using the High-Low Method,the Variable Component Is Computed Before

question 196

True/False

When using the high-low method,the variable component is computed before the fixed component is.

---

Definitions:

Rate of Return on Investment

A measure of the profitability and efficiency of an investment, calculated by dividing the investment's gain by its cost.

Owners' Equity

refers to the owner's interest in the assets of a business after all liabilities have been deducted.

Net Income

The profit remaining after all expenses, taxes, and costs have been subtracted from total revenue.

Working Capital Ratio

A financial metric used to determine a company's ability to pay off its current liabilities with its current assets.