When Using the Two Point Method of Cost Estimation or the High

question 126

True/False

When using the two point method of cost estimation or the high low method, the calculation to derive the variable cost component of a mixed cost is: change in cost ÷ change in cost driver.

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Definitions:

Variation

The occurrence of differences among individuals within a population, due to genetic differences and environmental factors, which can lead to biodiversity.

Mutation

Any change in DNA; may include a change in the nucleotide base pairs of a gene, a rearrangement of genes within the chromosomes so that their interactions produce different effects, or a change in the chromosomes themselves.

Clones

Genetically identical organisms, cells, or molecules derived from a single parent entity.

Fertilized Cell

A fertilized cell, or zygote, is the result of the fusion between an egg and a sperm cell, marking the beginning of a new organism's development.