Which of the Following Is the Formula for the High-Low

question 136

Multiple Choice

Which of the following is the formula for the high-low method of analyzing mixed costs?

• A) Fixed costs = total costs - (activity level × variable cost rate)
• B) Total costs = fixed costs - (activity level × variable cost rate)
• C) Variable costs = fixed costs + total costs
• D) Fixed costs = total costs - variable cost rate

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Definitions:

Construction Firms

Companies specializing in the construction of buildings, infrastructure, and other physical structures.

Work Breakdown Structure

A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish project objectives and create the required deliverables.

Project Management Tools

Software or methodologies used by project managers to assist in the planning, execution, tracking, and completion of projects.

Work Break

A pause or rest period during work hours designated for relaxation or eating.