When using the high-low method,the "high" point should be chosen as the data point with the highest volume (not the highest cost).

Question

Quizplus · Accepted Answer

The high point in the high-low method should be based on the highest activity level, such as the highest volume of units sold or highest number of customers served, not the highest cost. This allows for a more accurate determination of the variable cost per unit.

When Using the High-Low Method,the "High" Point Should Be Chosen