Ajax Uses the High-Low Method of Estimating Costs

question 31

Multiple Choice

Ajax uses the high-low method of estimating costs.Ajax 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 12,000 units,total costs were $78,000.Ajax would estimate fixed costs as:

• A)$28,000
• B)$30,000
• C)$64,000
• D)$128,000

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Definitions:

Collaborative Forecasting

A process where multiple stakeholders work together to predict future demands, improving supply chain efficiency.

Supply Chains

Networks connecting suppliers, manufacturers, distributors, and retailers, facilitating the production and delivery of goods to consumers.

=MAPE Function

Stands for Mean Absolute Percentage Error, a statistical measure used to assess the accuracy of forecasting models.

Mean Absolute Percent Error

A measure of prediction accuracy in statistics, representing the average of the absolute percentages of errors between predicted and observed values.