The High-Low Method

question 42

Multiple Choice

The high-low method:

• A) Utilizes the average and the mean values of costs to determine fixed and variable costs.
• B) Utilizes the high and low values of aggregate costs to estimate total fixed costs and the unit variable costs.
• C) Utilizes regression analysis to estimate total fixed costs and the unit variable costs.
• D) Requires cost items to be specifically classified as fixed costs or variable costs to be utilized.

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Definitions:

Korsakoff's Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), often associated with alcoholism.

Cerebral Trauma

Cerebral Trauma refers to physical injuries to the brain caused by external force, potentially leading to significant cognitive, physical, and emotional impairments.

Anterograde Amnesia

A condition that prevents new memories from forming after the onset of the amnesia, leaving the person unable to remember recent events or learn new information.

Procedural Memory

Is a type of long-term memory that involves how to perform different actions and skills, essentially knowing "how" to do things.