Home/Business/QUESTION 27 The hi lo method assumes: Fixed costs do not increase Economies of scale can be achieved Variable costs increase in exponentially as volume increases Variable costs decrease exponentially as volume increases
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Solved1 AnswerQUESTION 27 The hi lo method assumes: Fixed costs do not increase Economies of scale can be achieved Variable costs increase in exponentially as volume increases Variable costs decrease exponentially as volume increases
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Transcribed Image Text: QUESTION 27 The hi lo method assumes: Fixed costs do not increase Economies of scale can be achieved Variable costs increase in exponentially as volume increases Variable costs decrease exponentially as volume increases
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Transcribed Image Text: QUESTION 27 The hi lo method assumes: Fixed costs do not increase Economies of scale can be achieved Variable costs increase in exponentially as volume increases Variable costs decrease exponentially as volume increases
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Option 1 is correct. The high low method assumes that fixed costs do not change and remain same at all production levels. it does not contain any as ... See the full answer