When Using the High-Low Method, the "Low" Point Should Be

question 133

True/False

When using the high-low method, the "low" point should be chosen as the data point with the lowest volume (not the lowest cost).

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Definitions:

Profit

The financial gain achieved when the revenues obtained from business activities exceed the expenses, costs, and taxes associated with maintaining the activity.

Commodity

A primary item used in trading that is replaceable with other items of the same type.

Maximise

To increase to the greatest possible amount or degree.

Input

Resources or factors used in the production process to generate output, such as labor, capital, and materials.