The High-Low Method

question 35

Multiple Choice

The high-low method:

• A) Provides a true fixed cost line and a true variable cost line.
• B) Provides a true fixed cost line and an estimated variable cost line.
• C) Provides an estimated fixed cost line and a true variable cost line.
• D) Provides an estimated fixed cost line and an estimated variable cost line.

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Definitions:

Buyer

An individual or entity that purchases goods or services from another for a price.

Compounded Semi-annually

A method of calculating interest where the interest is added to the principal amount every six months, affecting subsequent interest calculations.

Accrued Interest

Interest that has been earned but not yet paid or received.

Principal

The original sum of money borrowed in a loan, or the original amount invested, excluding any interest or dividends.