The High-Low Method of Estimating the Fixed and Variable Components

question 77

True/False

The high-low method of estimating the fixed and variable components of a mixed cost is a precise approach that uses a statistical technique.

---

Definitions:

Excess Reserves

The funds that banks hold over and above the required reserve ratio set by a central banking authority.

Liabilities

Financial obligations or debts owed by an individual, company, or entity to other parties.

United States Treasury Securities

Debt securities issued by the U.S. government to fund its budget deficits and manage the national debt.

Open Market

A venue where buyers and sellers engage in the trade of commodities, securities, and other financial instruments under defined regulations.