Table 22-12 The Following Table Shows the Number of Voters Preferring Various

question 49

Multiple Choice

Table 22-12
The following table shows the number of voters preferring various amounts of spending on a new school.

-Refer to Table 22-12.Suppose the voters are asked to choose between $0.5 and $2.0.If all voters cast a vote for the spending amount closest to their own preference,which spending amount will win a majority of the votes?

• A) $0.5
• B) $2.0
• C) Neither. The vote will be a tie.
• D) Neither, since the median spending amount, $1.5, will always win in a vote.

---

Definitions:

High-Low Method

A technique that uses the highest and lowest total costs as a basis for estimating the variable cost per unit and the fixed cost component of a mixed cost.

High-Low Method

A technique used in managerial accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Variable Utilities Cost

The portion of utility expenses that varies with the level of business activity or production volume.

High-Low Method

A technique in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.