CHECKPOINT: COST, VOLUME, AND PROFIT QUESTIONS

CheckPoint: Cost, Volume, and Profit Questions



CheckPoint: Cost, Volume, and Profit Questions

Question 1

Mixed costs should be classified in their fixed and variable elements. This can be determined by using the High/Low method. The method takes the amount of costs acquired over a high point in time and also a low point in time. To determine the variable costs a company takes past costs and use the highest amount acquired and then the lowest amount acquired. Then the company subtracts the lowest from the highest in changes in cost. Then the company would divide that number ...