In Applying the High-Low Method, What Is the Fixed Cost

question 29

Multiple Choice

In applying the high-low method, what is the fixed cost?

• A) $17,500
• B) $36,000
• C) $14,000
• D) $50,000

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Definitions:

Risky Shift

The tendency for groups to make riskier decisions than the average risk initially advocated by their individual members.

Faulty Hindsight

The misinterpretation or incorrect analysis of past events, often seeing them as more predictable than they actually were.

Previous Sunk Costs

Refers to resources that have already been spent and cannot be recovered.

Groups

A number of individuals assembled together or having some unifying relationship.