A High-Low Approach to Establishing Fixed and Variable Components of Costs

question 33

Multiple Choice

A high-low approach to establishing fixed and variable components of costs is most effective when information available is

• A)curvilinear.
• B)erratic and highly fluctuating.
• C)outside of the relevant range.
• D)linear.

---

Definitions:

Salvaged Materials

Items recovered from waste or by-products that can be reused, recycled, or sold, often contributing to cost savings or additional income.

Demolition Cost

Expenses incurred in tearing down or destroying a building or structure, often factored into the decision-making for property redevelopment or renovation projects.

Lump-Sum Cost

A single total amount charged or paid for a group of services, rights, or products, rather than charging for them separately.

Market Values

The current value of an asset or company based on the prices at which its securities are traded in the market.