Critical inputs in using the high-low method include all of the following except
A)actual activity levels (production levels)for an operating period.
B)actual mixed costs (total costs)corresponding to the various activity levels.
C)a calculator.
D)a hypothesis for the slope.

Question

Quizplus · Accepted Answer

The high-low method requires actual activity levels and corresponding total costs for those levels. Additionally, a hypothesis for the slope is needed to calculate the variable cost component. A calculator is helpful but not a critical input as long as the calculations can be done manually.

Critical Inputs in Using the High-Low Method Include All of the Following