# The high low method is criticized because it a is not

• 11
• 100% (1) 1 out of 1 people found this document helpful

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 4 - 6 out of 11 pages.

76.The high-low method is criticized because ita.is not a graphical method.b.is a mathematical method.c.ignores much of the available data by concentrating on only the extreme points.d.doesn't provide reasonable estimates.22 - 4
79.Ponszko Nursery used high-low data from June and July to determine its variable cost of€12 per unit. Additional information follows:MonthUnits producedTotal costsJune2,000€32,000July1,00020,000If Ponszko’s produces 2,300 units in August, how much is its total cost expected to be?
80.In CVP analysis, the term "cost"
81.Which one of the following isnotan assumption of CVP analysis?
83.Which of the following isnotan underlying assumption of CVP analysis?a.Changes in activity are the only factors that affect costs.b.Cost classifications are reasonably accurate.c.Beginning inventory is larger than ending inventory.d.Sales mix is constant.
85.To which function of management is CVP analysis most applicable?
FOR INSTRUCTOR USE ONLY
Cost-Volume-Profitd.Controlling86.Hollis Industries produces flash drives for computers, which it sells for €20 each. Eachflash drive costs €13 of variable costs to make. During April, 1,000 drives were sold. Fixedcosts for March were €2 per unit for a total of €2,000 for the month. How much is thecontribution margin ratio?
87.Contribution margin
88.If a company had a contribution margin of HK\$1,000,000 and a contribution margin ratioof 40%, total variable costs must have beena.HK\$1,500,000.b.HK\$600,000.c.HK\$2,500,000.d.HK\$400,000.
90.A company has a unit contribution margin of £120 and a contribution margin ratio of 40%.What is the unit selling price?
91.Sales are HK\$500,000 and variable costs are HK\$330,000. What is the contribution marginratio?

Course Hero member to access this document

Course Hero member to access this document

End of preview. Want to read all 11 pages?

Course Hero member to access this document

Term
Fall
Professor
NoProfessor
Tags
HK