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

question 15

Short Answer

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

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Definitions:

EOQ

Economic Order Quantity, an inventory management technique that determines the ideal order size to minimize total inventory costs including holding and ordering costs.

Carrying Cost

The total cost of holding a specific inventory, including storage, insurance, taxes, and opportunity costs, over a certain period.

Restocking Costs

Restocking costs are expenses associated with replenishing inventory, including purchasing, shipping, handling, and storage costs.

Carrying Cost

The total cost of holding a particular inventory, including storage, insurance, depreciation, and opportunity costs.