The High-Low Method

question 8

Multiple Choice

The high-low method

• A)is a useful means of predicting the highest cost a company will incur in the operating period.
• B)is a useful means of separating fixed and variable elements from a mixed cost.
• C)is more time-consuming than the scatter diagram method.
• D)is more complex than the use of linear regression analysis.

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Definitions:

Technology Firms

Companies that focus on the development, production, and marketing of electronic devices, software, or services.

Utilization

The process of using resources or capabilities effectively and efficiently.

Market Position

The standing of a company or its products in the eyes of customers relative to its competitors, often measured by market share, reputation, and customer preference.