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.

---

Definitions:

Buy Shares

The act of purchasing ownership interests in a company, thereby becoming a shareholder entitled to dividends and capital gains.

Lower Bound

The minimum value that a theoretical price, such as an option's price, can reach.

Call Option

A contractual agreement that allows the buyer the choice, without any requirement, to purchase an asset at an agreed-upon price within a set period.

Stock Price

The current trading price of a company's shares on the stock market, reflecting the market's valuation of the company at a particular time.