In describing the cost equation, y = mx + b, "m" is:

A. The dependent variable, cost B. The independent variable, the level of activity C. The total fixed costs D. The variable cost per unit of activity

A disadvantage of the high-low method of cost analysis is that:

A.

It cannot be used when there are a very large number of observations

B.

It is too time consuming to apply

C.

It uses two extreme data points, which may not be representative of normal conditions

D.

It relies totally on the judgment of the person performing the cost analysis

A 45% contribution margin ratio means that:

	A.	The company contributes 45% of its operating income to charities
	B.	55% of the companys revenue is consumed by fixed and variable costs
	C.	The companys revenue has increased by 45% from the prior period
	D.	45% of the companys revenue is available to cover fixed costs and to contribute towardoperating income