Use the information below to answer the following question(s).At the high point of the relevant range, labour hours at Bradco Restoration were 10,000 and wages were $22,500.At the low point of the relevant range, labour hours were 7,500 and wages were $17,500.
-When using the high-low method, the two observations used are the high and low observations of the
A)cost driver.
B)dependent variables.
C)outliers.
D)mixed costs.
E)total pool cost.

Question

Quizplus · Accepted Answer

The high and low observations used in the high-low method refer to the cost driver, which is the variable that affects the total cost. In this case, the cost driver is labour hours. Therefore, the answer is A, cost driver.

Use the Information Below to Answer the Following Question(s)