The High-Low Method Calculates the Total Fixed Cost as the

question 61

Multiple Choice

The high-low method calculates the total fixed cost as the

• A)difference between total variable costs and total costs at a particular activity level.
• B)difference between the unit variable cost and the unit total cost.
• C)change in cost divided by the change in activity level for two points.
• D)change in activity level divided by the change in cost for two points.

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Definitions:

Spindle Fibers

Protein structures that form during cell division to separate chromosomes into daughter cells.

Cancer Cell

A cell that divides uncontrollably, forming tumors and potentially spreading to different parts of the body (metastasizing).

Fixed Order Cost

Represents the constant expenses associated with placing an order for goods or materials, regardless of the order size.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.