A mixed cost includes variable cost and fixed cost as its part. The high-low method is used to calculate the variable and fixed part of a mixed cost. Under this method, the high activity level cost and low-level cost are compared to calculate the variable and fixed part of the total mixed cost. To indicate: the major disadvantage of the high-low method.

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Answer 1

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Chapter 2, Problem 2.11Q

To determine

Concept introduction:

A mixed cost includes variable cost and fixed cost as its part. The high-low method is used to calculate the variable and fixed part of a mixed cost. Under this method, the high activity level cost and low-level cost are compared to calculate the variable and fixed part of the total mixed cost.

To indicate: the major disadvantage of the high-low method.

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Answer 2

Question

Chapter 2, Problem 2.11Q

To determine

Concept introduction:

A mixed cost includes variable cost and fixed cost as its part. The high-low method is used to calculate the variable and fixed part of a mixed cost. Under this method, the high activity level cost and low-level cost are compared to calculate the variable and fixed part of the total mixed cost.

To indicate: the major disadvantage of the high-low method.

Expert Solution & Answer

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Answer 3

Question

Chapter 2, Problem 2.11Q

To determine

Concept introduction:

A mixed cost includes variable cost and fixed cost as its part. The high-low method is used to calculate the variable and fixed part of a mixed cost. Under this method, the high activity level cost and low-level cost are compared to calculate the variable and fixed part of the total mixed cost.

To indicate: the major disadvantage of the high-low method.

Expert Solution & Answer

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Answer 4

Question

Chapter 2, Problem 2.11Q

To determine

Concept introduction:

A mixed cost includes variable cost and fixed cost as its part. The high-low method is used to calculate the variable and fixed part of a mixed cost. Under this method, the high activity level cost and low-level cost are compared to calculate the variable and fixed part of the total mixed cost.

To indicate: the major disadvantage of the high-low method.

Expert Solution & Answer

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Answer 5

Chapter 2, Problem 2.11Q

To determine

Concept introduction:

A mixed cost includes variable cost and fixed cost as its part. The high-low method is used to calculate the variable and fixed part of a mixed cost. Under this method, the high activity level cost and low-level cost are compared to calculate the variable and fixed part of the total mixed cost.

To indicate: the major disadvantage of the high-low method.

Answer 6

Chapter 2, Problem 2.11Q

To determine

Concept introduction:

A mixed cost includes variable cost and fixed cost as its part. The high-low method is used to calculate the variable and fixed part of a mixed cost. Under this method, the high activity level cost and low-level cost are compared to calculate the variable and fixed part of the total mixed cost.

To indicate: the major disadvantage of the high-low method.

Answer 7

Chapter 2, Problem 2.11Q

To determine

Concept introduction:

A mixed cost includes variable cost and fixed cost as its part. The high-low method is used to calculate the variable and fixed part of a mixed cost. Under this method, the high activity level cost and low-level cost are compared to calculate the variable and fixed part of the total mixed cost.

To indicate: the major disadvantage of the high-low method.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 2 - Prob. 2.1Q Ch. 2 - Prob. 2.2Q Ch. 2 - Prob. 2.3Q Ch. 2 - Prob. 2.4Q Ch. 2 - Prob. 2.5Q Ch. 2 - Prob. 2.6Q Ch. 2 - Prob. 2.7Q Ch. 2 - Prob. 2.8Q Ch. 2 - Prob. 2.9Q Ch. 2 - Prob. 2.10Q

Solution Summary: The author explains the high-low method used to calculate the variable and fixed part of a mixed cost. It assumes that the fixed cost amount remains contact at all levels of the activity.

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