Which of the Following Is a Correct Pair Based on Their

question 17

Multiple Choice

Which of the following is a correct pair based on their shared characteristics?

• A) the universe and a closed system
• B) the universe and an open system
• C) an ocean and an open system
• D) an ocean and a closed system

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Definitions:

High-low Method

The high-low method is a way of estimating the fixed and variable components of a cost by using the highest and lowest activity levels and their corresponding costs.

Fixed Costs

Expenses that do not change with the level of goods or services produced by the business, such as rent and salaries.

Variable Costs

Costs that vary directly with the level of production or service volume.