The high-low method:
A) Provides a true fixed cost line and a true variable cost line.
B) Provides a true fixed cost line and an estimated variable cost line.
C) Provides an estimated fixed cost line and a true variable cost line.
D) Provides an estimated fixed cost line and an estimated variable cost line.

Question

Quizplus · Accepted Answer

The high-low method uses the highest and lowest activity levels to estimate both fixed and variable costs, making both estimates rather than true values.

The High-Low Method