When Using the High-Low Method for Estimating Cost Behavior, the Slope

question 15

Short Answer

When using the high-low method for estimating cost behavior, the slope, or variable cost per unit, is calculated by ________.

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Definitions:

Utility Function

A mathematical representation of how different goods or outcomes give different levels of satisfaction or happiness to an individual.

Whisky Consumption

The act of drinking whisky, a distilled alcoholic beverage made from fermented grain mash, often associated with certain health, social, and cultural implications.

Gallons

A unit of measurement for volume primarily used in the United States to measure liquids, with 1 gallon equaling approximately 3.785 liters.

Utility Function

A mathematical representation used in economics to describe how the quantities of goods or services consumed lead to a level of consumer satisfaction or utility.