Using the high-low method, the estimate of the fixed component of inspection cost per month is closest to:
A)$16,210
B)$7,746
C)$15,761
D)$16,111

Name: Using the high-low method, the estimate of the fixed component of inspection cost per month is closest to: A)$16,210 B)$7,746 C)$15,761 D)$16,111
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Question

Quizplus · Accepted Answer

The high and low levels of activity and their corresponding total costs are needed to apply the high-low method. Without this information, we cannot estimate the fixed component of cost per month.

Using the High-Low Method, the Estimate of the Fixed Component