In Using the High-Low Method the Fixed Cost

question 29

Multiple Choice

In using the high-low method the fixed cost

• A) is determined by subtracting the total cost at the high level of activity from the total cost at the low activity level.
• B) is determined by adding the total variable cost to the total cost at the low activity level.
• C) is determined before the total variable cost.
• D) may be determined by subtracting the total variable cost from either the total cost at the low or high activity level.

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Definitions:

Organizational Resources

Assets, both tangible and intangible, that an organization utilizes to operate and achieve its objectives.

Sales Incentives

Financial or non-financial rewards offered to sales personnel to motivate them to increase sales performance.

External Factors

Elements outside of an organization that can impact its performance or operations, such as economic conditions or regulatory changes.

Scanlon

A type of participative management approach aimed at improving productivity and efficiency within an organization through employee involvement in decision-making.