The Billing Department Is Not Responsible for

question 38

Multiple Choice

The billing department is not responsible for

• A)updating the inventory subsidiary records
• B)recording the sale in the sales journal
• C)notifying accounts receivable of the sale
• D)sending the invoice to the customer

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Definitions:

High-low Method

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

Machine Hour

A unit of measurement that represents an hour of operation of a machine or equipment.

Fixed Costs

Expenses that do not change in proportion to the level of production or sales, such as rent and salaries.

High-low Method

A technique used in accounting and finance to estimate fixed and variable costs based on the highest and lowest levels of activity.