When Managers Use Their Judgment to Classify Costs as Variable

question 315

Multiple Choice

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

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

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Definitions:

Face Card

A term used in playing cards to refer to Jacks, Queens, and Kings.

Fair Die

A die that has an equal likelihood of landing on any one of its faces when thrown.

Events

In probability and statistics, an event is a set of outcomes of an experiment or situation to which a probability is assigned.

Disjoint

Sets that have no elements in common; non-overlapping.