When Using the High-Low Method, the Numerator of the Equation

question 68

Multiple Choice

When using the high-low method, the numerator of the equation that determines the slope is the ________.

• A) difference between the positive and negative values of dependent and independent variables
• B) difference between the fixed cost and variable cost associated with the cost driver
• C) difference between the high and low observations of the cost driver
• D) difference between the costs associated with highest and lowest observations of the cost driver

---

Definitions:

Form 1040

The routine IRS document prepared by individuals to declare their income for the tax year on an annual basis.

Qualified Education Loan

A loan taken out solely to pay qualified higher education expenses for the borrower, the borrower's spouse, or the borrower's dependent.

Qualified Education Expenses

Expenses required for enrollment or attendance at an educational institution, including tuition, fees, and course-related costs.

Taxpayer's Spouse

The legally married partner of a taxpayer, who may be considered for joint tax filing status and benefits.