When the High-Low Method of Estimating a Cost Behavior Pattern

question 16

Multiple Choice

When the high-low method of estimating a cost behavior pattern is used:

• A)cost and volume data must be reviewed for outliers.
• B)the direct result of the high-low calculations is the fixed expense amount.
• C)the highest and lowest sales price and volume amounts are used in the calculation.
• D)the resulting cost formula will explain total cost accurately for every value between the high and low volumes.

---

Definitions:

Diluted Paint

Paint that has been thinned with water or another solvent, used to achieve lighter tones or a more fluid consistency in painting.

Helen Frankenthaler

An American abstract expressionist painter known for her pioneering work in the color field painting movement.

Large-scale Portraits

Artworks that are larger than life-size, often created to emphasize the importance or status of the subject being portrayed.

Lucian Freud

A British painter known for his thickly impasted portrait and figure paintings, focusing on the texture and color of flesh.