When using the high-low method,the two observations used are the high and low observations of the:
A)residual term.
B)slope coefficient.
C)cost driver.
D)dependent variables.

Question

Quizplus · Accepted Answer

The high-low method is used to estimate the fixed and variable components of a mixed cost by using the highest and lowest observation of the cost driver. Therefore, the answer is C) cost driver.

When Using the High-Low Method,the Two Observations Used Are the High