Georgia Uses the High-Low Method of Estimating Costs

question 22

Multiple Choice

Georgia uses the high-low method of estimating costs.Georgia had total costs of $50,000 at its lowest level of activity,when 5,000 units were sold.When,at its highest level of activity,sales equaled 10,000 units,total costs were $78,000.Georgia would estimate variable cost per unit as:

• A)$14.00
• B)$9.10
• C)$5.60
• D)$10.54

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Bankruptcy Laws

Statutes that govern the process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Coupon Rate

The interest rate stated on a bond or other fixed-income security, represented as a percentage of the principal amount.

Restrictive Covenants

Clauses in a contract that limit certain actions of the parties involved, often used in employment agreements and loan documents to protect business interests.

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