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The High-Low Method Allows You to Differentiate Between Fixed and Variable

question 143

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The high-low method allows you to differentiate between fixed and variable costs when dealing with mixed costs.


Definitions:

Net Income

Net income is the amount of money left after all expenses, taxes, and costs have been subtracted from a company's total revenue.

Revenues

Income generated from normal business operations and includes discounts and deductions for returned merchandise.

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