The High and Low Points Used in the High-Low Method

question 273

True/False

The high and low points used in the high-low method tend to be unusual and therefore the cost formula for the mixed cost may not accurately represent all of the data.

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Definitions:

Parent-Country National

An individual who is employed by an organization or corporation in their home country and is working in another country where the organization operates.

Multinational Company

An organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs.

Production Costs

The total expenses incurred in the process of producing goods or services, including raw materials, labor, and overhead.

Distribution Costs

Expenses associated with delivering a company's products from the production point to the consumer, including transportation, warehousing, and logistics.