The ________ uses only the highest and lowest observed values of the cost driver within the relevant range and their respective costs to estimate the slope coefficient and the constant of the cost function.
A)cost function
B)relevant range
C)high-low method
D)dependent variable
E)independent variable

Question

Quizplus · Accepted Answer

The high-low method is a cost estimation technique that uses the highest and lowest observed values of the cost driver within the relevant range and their respective costs to estimate the slope coefficient and the constant of the cost function. It is a simplified approach to estimating costs that can be useful when detailed data is not available.

The ________ Uses Only the Highest and Lowest Observed Values