When Using the High-Low Method for Estimating Cost Behavior, the Slope

question 135

Essay

When using the high-low method for estimating cost behavior, the slope, or variable cost per sales dollar, is calculated by __________________________________.

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Definitions:

Encoding Specificity Principle

A principle in psychology that suggests the recall of information is improved when the conditions at the time of encoding (learning) are similar to the conditions at the time of retrieval (remembering).

Scuba Divers

Individuals trained to dive underwater using self-contained underwater breathing apparatus (SCUBA) for various purposes, including exploration, research, and recreation.

Underwater

Underwater refers to being submerged in water, or to the condition of owing more on a loan than the value of the property securing it.

Primacy Effect

A cognitive bias that results in a person remembering the first pieces of information encountered better than information presented later on.