The high-low method uses only two of the historical data points for estimating a cost equation

Question

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The high-low method uses two historical data points, but it also uses other information to estimate a cost equation. It calculates the slope between the two highest and lowest data points to determine the variable cost per unit and then uses this information to estimate the fixed cost component of the cost equation. Therefore, the high-low method uses more than just two data points for estimating a cost equation.

The High-Low Method Uses Only Two of the Historical Data