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

Question

Quizplus · Accepted Answer

The high-low method is a technique used to separate mixed costs into their fixed and variable components by using the highest and lowest values of the cost driver (independent variable). Therefore, the two observations used in the high-low method are the high and low values of the cost driver.

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