Which Method Are Managers Using When They Use Their Judgment

question 67

Multiple Choice

Which method are managers using when they use their judgment to classify costs as variable, fixed, or mixed?

• A)High-low method
• B)Account analysis
• C)Regression analysis
• D)Low-high method

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Definitions:

Simple Interest

Interest calculated on the principal amount of a loan or deposit, not including any previously earned interest.

Financial Position

Represents the net worth of an entity, detailing assets, liabilities, and shareholders' equity at a specific point in time.

Assignable Loan Contract

A loan agreement that allows the lender to transfer or assign the loan to another party.

Finance Company

A financial institution that offers loans, leases, and other financial services to consumers and businesses.