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.

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Definitions:

Kaizen

A focus on continuous improvement.

Continuous Improvement

A continuous endeavor to enhance products, services, or processes through both small and significant advancements.

TQM Tools

A set of methodologies and practices aimed at improving the quality of products and processes within an organization, part of Total Quality Management.

Line Employees

Workers directly involved in the production or delivery of products and services, as opposed to those in management or administrative roles.