When using the high-low method, the denominator of the equation that determines the slope is the:
A)dependent variable
B)independent variable
C)difference between the high and low observations of the cost driver
D)difference between the high and low observations of the dependent variables

Question

Quizplus · Accepted Answer

The high-low method calculates the slope by taking the difference in costs (dependent variable) and dividing it by the difference in the cost driver (independent variable), which is the denominator.

When Using the High-Low Method, the Denominator of the Equation