Using the High-Low Method, the Estimate of the Variable Component

question 16

Multiple Choice

Using the high-low method, the estimate of the variable component of electrical cost per machine-hour is closest to:

• A)$0.12
• B)$20.38
• C)$7.98
• D)$3.97

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Definitions:

Legislation

The process of making or enacting laws; it also refers to the laws themselves that have been created through this process.

Unlimited Joint Liability

A legal obligation among partners that holds each personally responsible for the total debts of a partnership without limits.

Capital Accounts

Financial records that show the ownership equity in a company, including initial capital contributions, retained earnings, and withdrawals by owners.

Outstanding Liabilities

Financial obligations that a company or individual has not yet settled.