Asked by Squid Neutral on Apr 30, 2024
Verified
Advantages of the high-low method are that it is easy to understand and apply.
High-Low Method
An accounting technique used to estimate the variable and fixed components of a company's costs, based on the highest and lowest levels of activity.
- Comprehend the utilization and constraints of the high-low method in estimating costs.
Verified Answer
CH
Carly HolmanMay 07, 2024
Final Answer :
True
Explanation :
The high-low method is a simple and straightforward method that involves using the highest and lowest activity levels to estimate fixed and variable costs. It is easy to understand and apply, making it a popular technique for many businesses.
Learning Objectives
- Comprehend the utilization and constraints of the high-low method in estimating costs.
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