Asked by Kaitlyn Simon on May 10, 2024
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The high-low method is used to derive the variable cost per unit and total fixed costs using just the highest and lowest volume levels.
Variable Cost Per Unit
The cost that changes with the level of output or production, expressed on a per unit basis.
Total Fixed Costs
The sum of all costs that remain constant regardless of the level of production or sales volumes.
Volume Levels
Refers to the varying intensities or amounts of sound, production, or activity in a given context.
- Acquire knowledge on utilizing the high-low method to estimate cost behavior.
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Learning Objectives
- Acquire knowledge on utilizing the high-low method to estimate cost behavior.
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