Using the high-low method, the estimate of the variable component of electrical cost per machine-hour is closest to:
A)$0.12
B)$20.38
C)$7.98
D)$3.97

Name: Using the high-low method, the estimate of the variable component of electrical cost per machine-hour is closest to: A)$0.12 B)$20.38 C)$7.98 D)$3.97
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

The high-low method calculates the variable cost per unit by taking the difference in total costs at the highest and lowest activity levels and dividing by the difference in activity levels.

Using the High-Low Method, the Estimate of the Variable Component