1
Q
high-low method
- what is the formula
- how to calc VC and FC
A
variable cost = (highest activity cost - lowest act cost)/(highest act units - lowest act units)
FC = highest activity cost - (variable cost * highest activity units)
2
Q
correlation coeficient
A
the strength in the relationship
will range b/t -1 and 1 (closest the number is to 1 = higher the relationship)
3
Q
BE point formulas
A
two methods:
1) selling price * X = VC*X + total fixed costs
* * X = units sold at breakeven point
2) total fixed costs / CM
* * CM = sales minus variable costs
