The High-Low Method Is Used to Derive an Estimated Line

question 48

True/False

The high-low method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels.

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Definitions:

Malpractice Action

A legal action filed against a professional person for failure to act in accordance with prevailing professional standards.

Properly Perform

To execute or carry out a task or duty correctly, efficiently, and up to the expected standards or specifications.

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) refer to a common set of accounting rules, standards, and procedures used in preparing financial statements in the United States.

Financial Accounting Standards Board

An independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and organizations in the United States.