Critical inputs in using the high-low method include all of the following except:
A)Actual activity levels (production levels) for an operating period.
B)Actual mixed costs (total costs) corresponding to the various activity levels.
C)A calculator.
D)An hypothesis for the slope.

Question

Quizplus · Accepted Answer

The critical inputs in using the high-low method are the actual activity levels and actual mixed costs, as they are necessary to calculate the variable and fixed cost components. A calculator may be helpful in performing the calculations, but it is not a critical input. An hypothesis for the slope is also not necessary for using the high-low method, as the slope can be calculated using the two extreme activity levels and their corresponding costs.

Critical Inputs in Using the High-Low Method Include All of the Following