While using high-low method, the number of units are the independent variable and the resulting costs are the dependent variable. Independent variable is the cause while costs incurred are the effect.

True

False

2 points

QUESTION 6

Gambino Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $138.80 per unit.

Sales volume (units)	6,000	7,000
Cost of sales	$369,000	$430,500
Selling and administrative costs	$407,400	$418,600

the cost of sales is a variable cost.

True

False