The High-Low Method

question 99

Multiple Choice

The high-low method

• A)calculates variable costs per unit by dividing the difference in the high and low activity levels by the high and low costs.
• B)gives accurate results of cost estimation,irrespective of the relevant range.
• C)helps in determining the fixed and variable components of a mixed cost.
• D)is based on the premise that all data points are necessary to define a linear cost-volume relationship.

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Definitions:

Satisfied First-Time Triers

Individuals who have a positive experience with a product or service on their first use, leading to potential loyalty.

Push Strategy

A marketing approach where a product is promoted by pushing it through distribution channels to the end consumers.

Promotional Mix

The combination of marketing tools utilized by a business to communicate and promote its products or services to the target audience.

Channel Members

Individuals or entities that are involved in the process of moving goods or services from producers to consumers within the supply chain.