Which of the Following Formulas Is Used to Calculate the Variable

question 123

Multiple Choice

Which of the following formulas is used to calculate the variable rate in the high-low method?

• A) Total Cost at High Point - (Fixed Rate × Output at High Point)
• B) Total Cost at High Point - (Step Rate × Output at Low Point)
• C) (High Point Cost - Low Point Cost) ÷ (High Point Output - Low Point Output)
• D) (Absorption Point Cost - Margin Cost) ÷ (High Point Cost + Low Point Cost)

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