Which of the following is not a step in estimating total cost using the high-low method?
A)Identify the highest and lowest levels of activity
B)Visually "fit" a line to the plotted points
C)Compute the variable cost per
D)Calculate the fixed cost using either the high point or the low point.

Question

Quizplus · Accepted Answer

Visually "fitting" a line to the plotted points is not a step in estimating total cost using the high-low method. The other three steps (identifying the highest and lowest levels of activity, computing the variable cost per unit of activity, and calculating the fixed cost using either the high point or the low point) are all integral to using the high-low method to estimate total cost.

Which of the Following Is Not a Step in Estimating