The method which considers the lowest and highest values of cost driver and cost within relevant range is called ____________?
Correct answer: D. high low method
- A. low high method
- B. constant equation
- C. variable equation
- D. high low method
Explanation
The high-low method estimates cost behavior by using the highest and lowest activity levels, together with their associated costs, within the relevant range. It then calculates the variable cost per activity unit from the changes between those points.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The target annual operating income is divided with invested capital to calculate _____________?
If the cost base is $350 and the markup component is 11% then prospective selling price will be __________?
An estimated cost per unit in long run, which enables the company to achieve it's per unit target, operating income is classified as ___________?
The examples of nonlinear cost functions are _____________?
In adjustment issues of costing, the database must consider wide range values of __________?
In the specification analysis, the assumptions related to linearity states but linearity must be within ____________?