When Using the High-Low Method,what Is the Correct Order of the Following

question 292

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 Manufacturing Overhead

The portion of the total manufacturing overhead costs that does not vary with the level of production, including costs such as rent, property taxes, and salaries of permanent staff.

Work in Process

Partially completed goods that are still in the production process at the end of an accounting period.

Standard Cost System

An accounting system that uses standard costs for product costing, based on expected costs.

Fixed Manufacturing Overhead

Expenses in a manufacturing process that remain constant regardless of the level of production, including costs like factory lease payments and equipment maintenance.