Which Step Is Performed First When Using the High-Low Method

question 117

Multiple Choice

Which step is performed first when using the high-low method?

• A)Find the vertical intercept
• B)Write the cost equation
• C)Predict total cost
• D)Find the slope

Understand the calculation and components of prime costs.

Distinguish between fixed and variable costs and calculate total cost at different activity levels.

Identify and calculate manufacturing overhead costs.

Calculate and interpret the cost per unit under varying production levels.

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Definitions:

Total Assets

The sum of all assets owned by an entity, including current and non-current assets, used to provide a comprehensive view of the entity's financial strength.

Return On Investment

A financial metric used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments, measuring gain versus cost.

Net Book Value

The value of an asset as recorded in the accounting records, subtracting accumulated depreciation or amortization from the original cost.

Intrinsic Reward

A type of motivation driven by an internal reward, like personal satisfaction or enjoyment of a task.