Asked by Katelyn Sauber on Jun 09, 2024
Verified
The high-low method can be used to estimate the cost equation using just two points.
High-Low Method
The high-low method is a statistical technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.
Cost Equation
An equation that reflects the relationship between costs, production volume, and other factors, often used for predicting costs at various levels of activity.
Two Points
In finance, two points refer to a one percent change in the face value of a financial instrument like a loan or mortgage, often related to fees or interest rates.
- Learn the high-low method for estimating cost behavior.
Verified Answer
Learning Objectives
- Learn the high-low method for estimating cost behavior.
Related questions
The High-Low Method Is Used to Derive the Variable Cost ...
When Using the High-Low Method for Estimating Cost Behavior,the Slope,or ...
Using the High-Low Method of Analysis, the Estimated Variable Lubrication ...
Lacourse Incorporated's Inspection Costs Are Listed Below: Management Believes ...
Lacourse Incorporated's Inspection Costs Are Listed Below: Management Believes ...