Implementation of This REA Diagram into a Relational Database Would

question 17

Multiple Choice

Implementation of this REA diagram into a relational database would require how many tables?

• A) 12
• B) 13
• C) 8
• D) 9

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Definitions:

High-Low Method

An approach to estimate fixed and variable costs using the highest and lowest levels of activity.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor costs.

High-Low Method

A method utilized in managerial accounting for predicting variable and fixed costs by analyzing the activity's maximum and minimum levels.

Contribution Margin Ratio

A measure that shows the percentage of sales revenue that exceeds the variable costs of production.