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Which of the Following Is the Formula for the High-Low

Question 40

Multiple Choice

Which of the following is the formula for the high-low method of analyzing mixed costs?


A) Fixed costs = total costs - (activity level × variable cost rate)
B) Total costs = fixed costs - (activity level × variable cost rate)
C) Variable costs = fixed costs + total costs
D) Fixed costs = total costs - variable cost rate

Correct Answer:

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