In Using the High-Low Method the Fixed Cost

question 29

Multiple Choice

In using the high-low method the fixed cost

• A) is determined by subtracting the total cost at the high level of activity from the total cost at the low activity level.
• B) is determined by adding the total variable cost to the total cost at the low activity level.
• C) is determined before the total variable cost.
• D) may be determined by subtracting the total variable cost from either the total cost at the low or high activity level.

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Definitions:

Exclusive Possession

The right of an individual or entity to use and control property to the exclusion of others.

Tenants in Common

A form of co-ownership where each owner holds a separate and distinct share of the property, which can be sold or passed on to heirs.

Acquires Ownership

The process by which a person or entity obtains the legal right or title to an asset or property.