When Using the High-Low Method, What Is the Correct Order

question 156

Multiple Choice

When using the high-low method, what is the correct order of the following three steps? i. write the cost equation
Ii) find the vertical intercept
Iii) find the slope

• A)i, ii, iii
• B)ii, iii, i
• C)iii, ii, i
• D)iii, i, ii

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Raw Materials

Basic goods used in the production of final products.

Barrier to Entry

Factors that prevent or hinder companies from entering a specific market, such as high startup costs, stringent regulations, or strong competition.

Personnel Shortages

Situations where there are not enough employees to handle the work required, often affecting service and production levels.