chapter 3 Flashcards
1
Q
total mixed cost equation
A
total fixed cost + total variable cost
or y = a+bx
2
Q
high low method steps
A
- find high and low points based on activity level (hrs usually)
- find fixed cost
- cost equation y = a + bx
3
Q
fixed cost equation for high low method
A
fixed cost = total cost high level - ( variable cost x high number of activity level)
4
Q
A
