The Stability Index Is a Number on a Scale from _____

question 622

Multiple Choice

The stability index is a number on a scale from _____.

• A) 1 to 5
• B) 1 to 10
• C) 1 to 15
• D) 1 to 20

---

Definitions:

Relevant Range

The span of activity level within which the assumptions about variable and fixed cost behaviors hold true.

High-low Method

A technique used in managerial accounting to estimate fixed and variable costs by analyzing the highest and lowest levels of activity and the associated costs.

Variable Cost

A cost that varies directly with the level of production or volume, such as materials and labor directly involved in the production process.

Least-squares Method

A statistical technique used to determine the line of best fit by minimizing the sum of the squares of the differences between observed and estimated values.