When Using the High-Low Method, the Numerator of the Equation

question 68

Multiple Choice

When using the high-low method, the numerator of the equation that determines the slope is the ________.

• A) difference between the positive and negative values of dependent and independent variables
• B) difference between the fixed cost and variable cost associated with the cost driver
• C) difference between the high and low observations of the cost driver
• D) difference between the costs associated with highest and lowest observations of the cost driver

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Definitions:

Future Use

Refers to resources or assets that are intended to be utilized in upcoming periods, not immediately.

Payments

Monetary transactions involving the transfer of funds to fulfill a debt or obligation.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, giving them partial ownership of the company.

Dividends

Payments made by a corporation to its shareholder members, usually in the form of cash or stock, representing a share of the corporate profits.