The data points with the ________ should be selected for use in calculating the variable cost per unit and the total fixed costs when using the high-low method.
A)highest cost and the lowest cost
B)highest volume and the lowest volume
C)highest volume and the lowest cost
D)highest cost and the lowest volume

Question

Quizplus · Accepted Answer

The high-low method involves selecting the periods with the highest and lowest levels of activity (volume) to calculate the variable cost per unit and the total fixed costs. This method does not directly consider the costs but rather the activity levels to determine the cost behavior.

The Data Points with the ________ Should Be Selected for Use