When the High-Low Method of Estimating a Cost Behavior Pattern

question 16

Multiple Choice

When the high-low method of estimating a cost behavior pattern is used:

• A)cost and volume data must be reviewed for outliers.
• B)the direct result of the high-low calculations is the fixed expense amount.
• C)the highest and lowest sales price and volume amounts are used in the calculation.
• D)the resulting cost formula will explain total cost accurately for every value between the high and low volumes.

Grasp the concepts and accounting treatments for the direct write-off and allowance methods for uncollectible accounts.

Understand the concept of a maturity date for a note receivable and how to calculate it.

Gain knowledge on the logistics and accounting implications of using credit cards in transactions and the flow of receivables.

Understand and apply Excel's basic operations and formulas.

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