When using the high/low method, the change in cost divided by the change in volume is:
A) the fixed cost per unit.
B) the mixed cost per unit.
C) the variable cost per unit.
D) the total cost per unit.

Question

Quizplus · Accepted Answer

The change in cost divided by the change in volume represents the variable cost per unit. The high/low method uses the highest and lowest activity levels to estimate the fixed and variable components of a mixed cost. Therefore, the variable cost per unit can be determined by dividing the change in cost by the change in volume.

When Using the High/low Method, the Change in Cost Divided