When Applying the High-Low Method the Variable Cost Element of a Mixed

question 135

True/False

When applying the high-low method the variable cost element of a mixed cost is calculated before the fixed cost element.

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Definitions:

Compounded Quarterly

Interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This compounding occurs four times a year.

Monthly Deposit

A fixed amount of money deposited into an account every month, often as a way to save or invest.

Savings Account

A bank account that earns interest over time, designed for storing money that is not intended for daily expenses.

Compounded Quarterly

A way of calculating interest where the interest is added to the principal balance four times a year, allowing the investment to grow at a faster rate due to the interest on interest effect.