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The high-low method a. is based on the premise that all data points are necessary to define a linear cost-volume relationship. b. helps in determining
The high-low method
a. | is based on the premise that all data points are necessary to define a linear cost-volume relationship. | |
b. | helps in determining the fixed and variable components of a mixed cost. | |
c. | calculates variable costs per unit by dividing the difference in the high and low activity levels by the high and low costs. | |
d. | gives accurate results of cost estimation, irrespective of the relevant range. |
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