Which Method Can Be Used to Separate Semi-Variable Costs into Their

question 23

Multiple Choice

Which method can be used to separate semi-variable costs into their fixed and variable components?

• A) the line of best fit
• B) high-low method
• C) linear regression method
• D) all of the above methods

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Definitions:

Economic Profit

The profit from business activities minus both the explicit and implicit costs, including opportunity costs.

Accounting Profit

The net income of a business as calculated by subtracting total expenses from total revenues, following standard accounting principles.

Marginal Costs

The additional expense incurred from the creation of one extra unit of a product, essential in economic decision-making.

Marginal Cost Curve

A graphical representation showing the cost of producing one more unit of a good.