The High-Low Method Basically Fits a Line Through the Highest

question 187

Multiple Choice

The high-low method basically fits a line through the highest and lowest ________ points.

• A)fixed cost
• B)variable cost
• C)volume
• D)none of the above

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Definitions:

Cash Purchase

A transaction method in which goods or services are paid for in full with cash at the time of purchase.

Incremental Value

Incremental value refers to the additional or extra value generated by undertaking a specific action or investment compared to not doing so.

Merger Premium

The merger premium is the additional cost above the market price that a company pays to acquire another company, often reflecting the perceived future value of the target company.

Shares Outstanding

refers to the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.