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The High-Low Method Is Used in Classifying a Mixed Cost

question 71

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The high-low method is used in classifying a mixed cost into its variable and fixed elements.


Definitions:

MU/P Ratio

The Marginal Utility to Price ratio, used in economic analysis to evaluate the satisfaction received from consuming an additional unit of a good relative to its cost.

Marginal Utility

The additional satisfaction or benefit received from consuming one more unit of a good or service.

Total Utility

The complete satisfaction received from consuming a particular quantity of goods or services.

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