When the Total Variable Costs Are Deducted from Total Mixed

question 167

Multiple Choice

When the total variable costs are deducted from total mixed costs,we obtain ________.

• A) mixed cost per unit
• B) variable cost per unit
• C) total high-low costs
• D) total fixed costs

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Definitions:

Direct Write Off Method

A method of accounting for bad debts that involves charging unpaid invoices directly to expense when they are determined to be uncollectible.

Bad Debts Expense

An expense account to record accounts receivable that a company does not expect to collect.

Allowance for Doubtful Accounts

A contra-asset account designed to predict the value of receivables that are expected to be uncollectible.