Which of the Following Statements Is True When Referring to the High-Low

question 320

Multiple Choice

Which of the following statements is true when referring to the high-low method of cost analysis?

• A) The high-low method has no major weaknesses.
• B) The high-low method is very hard to apply.
• C) In essence, the high-low method draws a straight line through two data points.
• D) The high-low method uses all of the available data to estimate fixed and variable costs.

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Definitions:

Subordinates

Employees or team members who are lower in rank or position and report to someone higher in the organizational hierarchy.

Behavioral Model

A theoretical framework used for describing and predicting how an individual's behavior is learned and expressed within a psychological context.

Effective Leadership Style

The manner or approach of leading that successfully inspires and guides individuals or groups towards achieving organizational goals.

Situation

A set of circumstances or a scenario in which individuals find themselves, affecting their behavior and decision-making.