- 1 Marks
Question
ONE of the methods of separating fixed costs from semi-variable costs is:
A. Low high method
B. Variable method
C. High low method
D. Constant method
E. Semi variable method
Answer
C. High low method
Explanation:
The high-low method is used to separate fixed and variable components of a semi-variable cost. It uses the highest and lowest levels of activity and their corresponding total costs to calculate the variable cost per unit and fixed costs. This makes option C the correct answer.
- Tags: Cost Classification, Fixed Costs, Semi-Variable Costs
- Level: Level 1
- Topic: Costing Techniques
- Series: NOV 2023
- Uploader: Theophilus