The High-Low Method May Give Unsatisfactory Results If

question 26

Multiple Choice

The high-low method may give unsatisfactory results if

• A)the points are unrepresentative.
• B)volume of activity is heavy.
• C)volume of activity is light.
• D)the data points all fall on a line.

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Definitions:

Adjusting Journal Entry

Entries made in accounting records to update the balances of accounts before producing financial statements, ensuring they adhere to the accrual basis of accounting.

Salaries

Compensation given to employees for their labor or services, typically paid on a monthly or biweekly basis.

Five-day Week

A common work schedule that consists of five working days, usually Monday through Friday, followed by a two-day weekend.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, recognizing the decrease in the value of the asset over time.