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The graph below shows the yearly incidence of viral hepatitis per 100,000 population from 1982-2012 in the United States (US) . During this period, the total population in the US continued to increase, as shown in the table below:
At any given time point, the number of individuals at risk for hepatitis infection is assumed to be equal to the total US population. Based on these data, which of the following is most likely to be true?
Relevant Range
The range of activity within which the assumptions about fixed and variable cost behaviors hold true.
High-Low Method
An accounting method used to estimate the fixed and variable components of a cost based on the highest and lowest levels of activity.
Variable Maintenance Cost
Costs that change in proportion to the operational activity of a company, such as repairs and maintenance expenses that vary with usage.
Mixed Cost
A cost containing both variable and fixed cost elements, changing in total with activity level but not proportionately.
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