Question: A high-low approach to establishing fixed and variable components of costs is most effective when information available is: a. Curvilinear. b. Erratic and highly fluctuating.

A high-low approach to establishing fixed and variable components of costs is most effective when information available is:
a. Curvilinear.
b. Erratic and highly fluctuating.
c. Outside of the relevant range.
d. Linear.

Step by Step Solution

★★★★★

3.43 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

b erratic and highly fluctuating The highlow method involves taking t... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The condensed comparative statements of Uranium Mining Corporation follow: Assets Cash 2019 Uranium Mining Corporation Income Statement ($000) For Years Ended December 31 2018 2017 2016 2015 2014...

Identify the fixed and variable components of costs from your regression. How do I know if the regression information is reliable? Hawaiian Airlines vs Spirit Airlines What is the difference between...

Other things equal, diversification is most effective when A. Securities' returns are uncorrelated. B. Securities' returns are positively correlated. C. Securities' returns are high. D. Securities'...

Fixed manufacturing costs are $ 70 per unit, and variable manufacturing costs are $ 132 per unit. Production was 384,000 units, while sales were 345,600 units. Determine (a) Whether variable costing...

OK, here is the problem. It is supposed to be done in excel. E-mail me if you have any questions. Thank you! ashley_bates05@hotmail.com Part One Big Al's Pizza, Inc., a new subsidiary of Big Al's...

Part four during the first two years of operations, Big Als overhead costs have fluctuated from month to month. Although overhead appears to go up and down according to the number of pizzas produced...

Kendra Corporations total utility costs during the past year were $1,200 during its highest month and $600 during its lowest month. These costs corresponded with 10,000 units of production during the...

Cheetah Delivery operates a fleet of local delivery vehicles. Management wants to estimate the fixed and variable costs per mile. Industry standards indicate variable costs should be no more than...

High-low Method Practice (not a graded item, answers at end): The Hilo Pineapple Producers? total overhead costs contain both fixed and variable costs. Therefore the overhead costs are considered...

High-Low, Break-even: Lancer Audio produces a high-end AV receiver that sells for $1300. Total operating expenses for the past 12 months are as follows: Units Produced and Sold/Cos t : August 165 /...

Indian Rivers management is currently evaluating a new productlite orange juice. Studies done by the firms marketing department indicate that many people who like the taste of orange juice will not...

When 1.550 g of liquid hexane (CH14) undergoes combustion in a bomb calorimeter, the temperature rises from 25.87 C to 38.13 C. Find AEm for the reaction in kJ/mol hexane. The heat capacity of the...

If the NPV of project A is + $120. That of project B is -$40, and that of project C is + $40. What is the NPV of the combined project?

Why is it necessary for businesses to offer work - life balance programmes in order to strategically position themselves? What do you think their reasoning? Explain.

You have the following information for McBride Inc. for the month ended October 31, 2012. McBride uses a periodic method for inventory. Instructions(a) Calculate(i) Ending inventory ,(ii) Cost of...

(Computation of Basic and Diluted EPS) The information below pertains to Barkley Company for 2010. Net income for the year.................................................................$1,200,000...

The following two items appeared on the Internet concerning the GAAP requirement to expense stock options. WASHINGTON, D.C.February 17, 2005 Congressman David Dreier (RCA), Chairman of the House...

(EPS with Contingent Issuance Agreement) Brooks Inc. recently purchased Donovan Corp., a large mid western home Painting Corporation. One of the terms of the merger was that if Donovans income for...

Canned fruits and vegetables are the main products made by Good Foods, Inc. All direct materials are added at the beginning of the Mixing Department's process. When the ingredients have been mixed,...

The Bureau of Investigation was later renamed as: Question 4 options: a. DEA b. FBI c. USSS d. CIA

Bronco is a newly established company since 20118. It produces premium ice cream in a variety of flavors. Over the past months, and due to the company's efforts to lower its prices to get more...

Final Paper Instructions/Guidelines: The final paper must be a minimum of 5 pages and a maximum of 7 pages in APA format. You can find APA guidelines in the Week Six folder under final paper tips....

$3,528,972$3,617,144$3,797,905$3,812,284 $3,324,915$3,528,972$3,723,786$3,797,905 Labor-hours is more highly correlated with factory costs than machine-hours. Machine-hours is more highly correlated...

BSBFIM501: Assessment 2- Managing Budgets. I am so bad at this, and don't understand how to do any of this assessment. BSBFIM501 - Assessment 2 Task 1 - Sales Budget Part A (1) The Black Helmet Motor...

Anatomy of Lean Thinking in New Zealand Workplaces Case Study of Hill Laboratories Introduction \& Profile Hill Laboratories is a family-owned business (with some shareholding by Senior Managers and...

Leader Actions That Foster Teamwork Actions Leaders Can Take Using Their Own Resources: Defining the Team's Mission and Tasks A starting point in developing teamwork is to specify the team's mission....