Which of the following cost estimation methods finds the variable portion of a mixed cost before calculating the fixed portion?
A)Scattergraph.
B)High-low method.
C)Account analysis.
D)Linear regression.
E)Engineering approach.

Question

Quizplus · Accepted Answer

The high-low method identifies the variable cost per unit by analyzing the highest and lowest activity levels, then calculates the fixed cost by subtracting the total variable cost from the total cost at either the high or low activity level.

Which of the Following Cost Estimation Methods Finds the Variable