1- The high-low method:

	a.	Always selects the highest and lowest data points.
	b.	Chooses the highest and lowest data points for the independent variable only.
	c.	Chooses high and low activity data points that are representative of the data around them.
	d.	Chooses the highest and lowest data points for the dependent variable only.
	e.	None of these answers are correct.

2-In the current year, Comfy Couch Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200.

Comfy Couch Company's margin of safety (MOS) in units is:

	a.	9,100.
	b.	9,900.
	c.	8,500.
	d.	8,000.
	e.	8,800.

3-FIFO follows the order costing principle:

a) True

b)False