Taunton Company Uses the High-Low Method to Estimate Its Cost

question 22

Multiple Choice

Taunton Company uses the high-low method to estimate its cost function. The information for 2017 is provided below:

What is the constant for the estimated cost equation?

• A) $277,500
• B) $300,000
• C) $165,000
• D) $135,000

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Definitions:

Aversion Therapy

A form of psychological treatment where undesirable behaviors are reduced by associating them with unpleasant stimuli.

Contingency Management

A behavioral therapy technique that rewards or punishes individuals for their behaviors, often used in addiction treatment to encourage sobriety.

Detoxification Procedures

Medical or therapeutic measures taken to remove toxic substances or effects of substances from a person's body, commonly associated with substance abuse recovery.

Withdrawal Symptoms

Physical or mental symptoms that occur after stopping or reducing intake of a substance that was used regularly.