Cardinal Uses the High-Low Method of Estimating Costs

question 30

Multiple Choice

Cardinal uses the high-low method of estimating costs.Cardinal had total costs of $25,000 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 $39,000.Cardinal would estimate variable cost per unit as:

• A)$7.00
• B)$4.55
• C)$2.80
• D)$5.26

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Definitions:

Flavor Aversion Conditioning

The process by which an organism learns to avoid a food or flavor that it associates with illness or discomfort.

Lateral Amygdala

A section of the amygdala that appears to be responsible for the elicitation of conditioned fear and conditioned flavor aversion.

Parietal Lobe

A region of the brain located at the upper back area in the skull, responsible for processing sensory information such as touch, temperature, and pain.

Imprinting

The development of a social attachment to a stimulus experienced during a sensitive period of development.