When Using the High-Low Method,the Accountant Assumes the Fixed Portion

question 117

True/False

When using the high-low method,the accountant assumes the fixed portion of mixed costs to be the lowest fixed amount incurred during the period under review.

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Definitions:

Strategic Business Units

A division of a larger company that operates as its own entity, with its own mission and objectives, often focusing on a specific product or market.

Boston Consulting Group

A global management consulting firm known for its expertise in business strategy and for pioneering the growth-share matrix.

Cross-Functional Team

A group of individuals with different expertise and from various departments within an organization, working together toward a common goal.

Competencies

A combination of skills, knowledge, and abilities that individuals possess which enable them to perform tasks effectively.