When using the high-low method, what is the correct order of the following three steps? i. Write the cost equation.
Ii) Find the vertical intercept.
Iii) Find the slope.
A) i, ii, iii
B) ii, iii, i
C) iii, i, ii
D) iii, ii, i

Question

Quizplus · Accepted Answer

First, find the slope (iii) using the highest and lowest activity levels. Then, find the vertical intercept (ii) using the slope and one of the data points. Finally, write the cost equation (i) using the slope and intercept.

When Using the High-Low Method, What Is the Correct Order