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,ii,i
D)iii,i,ii

Question

Quizplus · Accepted Answer

To use the high-low method, we need to first find the slope by subtracting the high cost from the low cost and dividing by the difference in activity levels. This means that step iii should come first. Then, we use the slope to find the vertical intercept by plugging in one of the activity levels (either the high or low) and the corresponding cost. This means that step ii should come next. Finally, we can write the cost equation by plugging in the slope and vertical intercept. Therefore, the correct order is iii, ii, i, which corresponds to choice letter C.

When Using the High-Low Method,what Is the Correct Order of the Following