In Applying the High-Low Method, What Is the Unit Variable

question 116

Multiple Choice

In applying the high-low method, what is the unit variable cost? $\begin{array}{llr}\text { Month}&\text { Miles }&\text { Total Cost }\\hline \text { January } & \overline{80,000} & \$ 192,000 \\\text { February } & 50,000 & 160,000 \\\text { March } & 70,000 & 188,000 \\\text { April } & 90,000 & 260,000\end{array}$

• A) $2.88
• B) $2.50
• C) $3.20
• D) Cannot be determined from the information given.

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Definitions:

Influenced By Outliers

This describes the impact that anomalous data points, which differ significantly from other observations, have on statistical analyses, potentially skewing the results.

Mean

The mean is a measure of central tendency that is calculated by adding up all values in a dataset and dividing by the number of values.

Variance

The statistical measurement of the spread between numbers in a data set, indicating how much the elements differ from the mean.

Accounting Data

Financial information and records pertaining to a company's operations, financial position, and cash flows.