The high-low method is used to estimate a cost equation that can be used to predict costs at estimated activity levels.

Name: The high-low method is used to estimate a cost equation that can be used to predict costs at estimated activity levels.
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Question

Quizplus · Accepted Answer

The high-low method involves using the highest and lowest activity levels to estimate the variable cost per unit of activity, and then using this cost per unit to estimate total costs at other activity levels.

The High-Low Method Is Used to Estimate a Cost Equation