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:

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Initial Public Offering

The first time a company offers its shares for sale to the public, transitioning from private to publicly traded.

IPO

Initial Public Offering, the process by which a private company offers shares to the public in a new stock issuance.

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