The White Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. White Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
How is the cost function stated?
Definitions:
Cash Flows
The total amount of money being transferred into and out of a business, especially as affecting liquidity.
Indirect Method
An approach used in cash flow statements to adjust net income for changes in non-cash items to calculate cash provided by operating activities.
Operating Activities
Transactions and events that pertain to the core business functions of an organization, influencing net income.
Inventory Decrease
A reduction in the quantity of goods held in stock by a company.
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