When using the high-low method, the variable cost per unit can be found as the
A) run over rise.
B) rise over run.
C) change in volume over change in cost.
D) vertical intercept.

Question

Quizplus · Accepted Answer

The variable cost per unit in the high-low method is calculated as the change in cost divided by the change in volume, which is mathematically represented as the "rise" over the "run". This corresponds to the slope of the line in a cost-volume graph, where the "rise" is the change in total costs and the "run" is the change in activity level (volume).

When Using the High-Low Method, the Variable Cost Per Unit